Crude oil prices dip on strong sell-off amid rising Omicron concern

December 02, 2021 12:30 PM AEDT | By Arpit Verma

Crude oil prices dip on strong sell-off amid rising Omicron concern — Image source: © Designer491 | Megapixl.com

Crude oil is under pressure

Both the benchmarks have been under pressure for weeks, initially due to the plan of the US and other oil-consuming nations to release oil from their strategic reserves and now fears of Omicron dampened the oil demand, weighing its prices.

Oil extraction

Source: © Aneese | Megapixl.com

Market speculators who took long-term positions in crude oil this year on expectations of tight supply have shifted as fundamentals reversed.

Both the benchmarks have recorded the steepest monthly fall since March 2020 with WTI crude oil down by nearly 21% and Brent by 16%.

Bottom Line

Crude oil prices have registered the biggest monthly drop in the last month since March 2020 on the back of supply concerns amid rising cases of the new variant of coronavirus. The prices are additionally weighted by the plan of the US and other oil-consuming nations to release oil from their strategic reserves.

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