Brent crude declined as bearish hit

Futures in London fell below $72 a barrel after falling 2.2% last week. Covid-19 infections are rising from the US to Europe as officials struggle to stop the spread of Omicron. This has led to some countries banning air travel and fears that further lockdowns could be imposed, curbing the movement of people and reducing demand for crude and oil products.

The structure of the oil market is also showing signs of weakness. Quick time for Brent once again flipped into a bearish turn on Monday, indicating that oversupply could be on the horizon in early 2022.

The bearish headwinds are mounting for the crude oil market to move into the holiday period, when thinner trading volumes could increase price volatility. Demand is easing in Asia, central banks are turning to tighter monetary policy to rein in rising inflation, and President Joe Biden’s economic agenda has hit a blow after Senator Joe Manchin rejected a spending package. Put.

Jeffrey Haley, senior market analyst at Oanda Asia Pacific Ptey, said, “We can wait for a week of very high volatility. But it is dangerous to assume that oil will slide further down from here as OPEC+ sits there watching, And they have left themselves room to react very quickly when needed.”

New York state broke a record for new infections and New York City Mayor Bill de Blasio called on the federal government to increase the supply of tests and treatments to the city amid a spike in infections caused by Omicron. Germany, after recovering from a wave caused by the delta variant, is headed for another surge caused by Omicron, the health minister warned.

This story has been published without modification in text from a wire agency feed.