Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Brent oil slides on covid concerns ahead of key OPEC+ meeting

© Supplied by BloombergRussian oil pumping jacks
Russian oil pumping jacks

Brent oil slumped as increasing coronavirus cases and a new Covid-19 strain raised concerns about the outlook for energy demand ahead of next week’s OPEC+ meeting on production policy.

Futures in London slid toward $80 a barrel as crude was swept up in a wave of caution across global markets. Virus cases are climbing in Europe and the US, while UK authorities will temporarily ban flights from some southern African countries and put travellers in quarantine over worries about the new strain.

“The new Covid variant found in South Africa is ringing fresh alarm bells,” said Vandana Hari, founder of Vanda Insights in Singapore. “I expect OPEC+ to stay the course on its tapering strategy but if the new variant emerges as a major problem in the coming days, it may end up pausing the monthly increments.”

OPEC+ meets Dec. 2 to decide production policy for January following the unprecedented move by the US and other nations to tap strategic stockpiles to tame rising energy prices. While delegates from the cartel have signalled that supply might have to be held back, Citigroup Inc. said reducing quotas would erode the group’s claim of providing public good by stabilising markets.

The alliance, which has been restoring 400,000 barrels a day of supply to the market each month, will have to consider internal projections that the reserves release will exacerbate a surplus it’s forecasting for early next year. The group has, however, been accused of creating “artificial tightness” by the International Energy Agency, which urged an accelerated return of supply.

Prices

Brent for January settlement tumbled 2.1% to $80.51 a barrel on the ICE Futures Europe exchange at 12:30 p.m. in Singapore. Prices are up 2.1% this week.

West Texas Intermediate for January fell 2.6% from Wednesday’s close to $76.36 on the New York Mercantile Exchange.

There was no settlement Thursday due to the Thanksgiving holiday and all transactions will be booked Friday.

OPEC’s ability to meet its expanding output targets has been hindered by under-performance by some members. The group delivered barely half the increase it had planned for October as African nations — particularly Angola and Nigeria — struggled with production losses.

Recommended for you

Tags

More from Energy Voice

Latest Posts