Oil suffered the worst fall of the year due to fear of the new variant of the coronavirus.

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source: newscomworld.com

Oil suffered the worst fall of the year due to fear of the new variant of the coronavirus.

WTI futures contracts for January delivery cut $ 10.24 from the previous session.

The price of intermediate oil of texas ( WTI ) closed this Friday with a marked decrease of 13.06%. It stood at 68.15 dollars, dragged by the fear that a new variant of COVID-19 detected in South Africa causes in the market, which led crude oil to suffer its worst decline of the year.

"It appears that the discovery of a variant of covid-19 in southern Africa is scaring markets globally. Germany is already limiting travel from several affected nations in the region," explained Again Capital representative John Kilduff in a note.

According to data at the end of operations on the New York Mercantile Exchange (Nymex), in a session shorter than usual because it is the day after Thanksgiving, WTI futures contracts for January delivery cut 10.24 dollars compared to the previous session.

US oil suffered a sharp drop after the announcement of a new variant detected in South Africa, which has been described by the World Health Organization (WHO) as "worrying, "and which has already caused several countries to have banned the arrival of flights from various nations of southern Africa.

These measures will foreseeably affect the volume of shipments, so it is estimated that the demand for "black gold" will decline when production has just begun to increase.

In addition, this week, the president of the United States, Joe Biden, announced that he would release 50 million barrels of crude from the Strategic Petroleum Reserve in an initiative together with other major energy consumers, such as China, India, Japan, the Republic of Korea and the United Kingdom, the White House explained in a statement.

"It appears that the discovery of a variant of covid-19 in southern Africa is scaring markets globally. Germany is already limiting travel from several affected nations in the region," explained Again Capital representative John Kilduff in a note.

"The last thing oil needs right now is another threat to the recovery of air travel," he added.

On the other hand, natural gas contracts for December delivery rose 37 cents to $ 5.44 per thousand cubic feet, and gasoline contracts due the same month fell 29 cents to $ 2.03 a gallon.