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Highlights
- Crude oil prices inched lower on Tuesday.
- The prices recorded the biggest monthly fall since March 2020.
- The prices were additionally weighted following Industrial data showing a minimal drawdown of the US crude stock.
Crude oil prices dropped on Tuesday after the chief cast of Moderna doubted the efficiency of the COVID-19 vaccine against the new variant of coronavirus, prompting worries about oil demand.
February delivery Brent Crude oil futures last traded at US$69.80 per barrel down 0.50%, whereas January delivery WTI crude oil futures traded 0.73% up at US$66.66 per barrel as of 1 December 2021 at 12:06 PM AEDT.
Biggest price drop in November
The current drop in the prices of crude oil is the biggest monthly decline since the outset of the pandemic. The fears of oil demand prompted through the spread of new coronavirus variant and expectations that some leading oil consumers across the globe will pump crude from their strategic reserves.
The prices were additionally weighted following Industrial data showing a minimal drawdown of the US crude stock.
Adding to this, Jerome Powell, chairman of the Federal Reserve stated that the central banks are likely to increase, large-scale bond purchases at the next year's policy meet.
Source: © Gumpapa | Megapixl.com
Meanwhile, OPEC along with its allies commenced two days of meetings on Wednesday to decide the fate of oil in the coming month.
Bottom Line
Crude oil prices recorded the biggest monthly drop since March 2020 in November amid rising cases of the new variant of coronavirus. The prices of the world's largest traded commodity had already under pressure as the leading oil consumers decided to introduce oil from their strategic reserves, into the market.