Crude oil trims its gains after recovering on early trade on Monday

November 30, 2021 02:30 PM AEDT | By Arpit Verma

Crude oil trims its gains after recovering on early trade on Monday — Image source: © Bulus | Megapixl.com

Biggest price drop since April 2020

The sharp fall in the prices of crude oil on Friday was the biggest one-day drop since April 2020, pointing to the fears of investors that COVID-19 related lockdowns would dampen the demand.

If the Omicron variant of coronavirus proves more contagious or vaccine-resistant, it could impact trade, travel, and petroleum demand.

OPEC

Source: © Gumpapa | Megapixl.com

The new variant of coronavirus has created a challenge among OPEC and its allies, scheduled to meet on 2 December to discuss the output for January. The cartel has delayed its technical meeting to analyse the impacts of the Omicron variant.

Bottom Line

Crude oil prices trimmed their gains late on Monday after recovering from Friday's losses. The prices of crude oil dropped by nearly 10% on Friday followed by the news of the spread of a newer variant of coronavirus, sparking concerns of new lockdowns in investors' minds.

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