Oil prices decline amid concerns over energy demand prospects

On Friday, December 17, oil trading ended in decline. A barrel of Brent fell 2.09% to $ 73.03 amid a decline in risk appetite. American stocks and precious metals came under pressure. Investors have become wary that high inflation will lead to a tightening of central bank policies around the world.

The rally of the dollar was caused by the representative of the US Federal Reserve Christopher Waller. He said that rates in the United States may be raised as early as March. The oil market experienced additional pressure from the rapid spread of the Omicron strain and the tightening of measures to combat it.

On Monday, December 20, the price fell 1.88% to 71.66. Oil prices fell on concerns about the outlook for energy demand. Covid-19 infections are on the rise all over the world. The authorities are trying to curb the spread of Omicron. A state of emergency has been declared in London. In the Netherlands, a hard lockdown has been introduced from December 19 to January 14.

Buyers surrendered support at $ 72.45. Futures on the SP500 index is trading in the red. Sellers are set to move towards the $ 68 level amid declining interest in risky assets. OPEC is watching the market from the sidelines. The cartel can call an extraordinary meeting to discuss the current situation at any time in order to adjust the volume of oil production to stabilize prices.

https://www.reuters.com/markets/commodities/oil-prices-drop-2-rapid-omicron-spread-dims-fuel-demand-outlook-2021-12-20/