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The price of burned North Sea oil, which is used as a benchmark for oil trading around the world, fell 4.70 percent on Monday. After a solid rise in the last two months, the price of oil is falling below $ 50 a barrel.
This happens after a new variant of the coronavirus was discovered in the UK. The mutated variant can be up to 70 percent more contagious than the variant the world has lived with for nearly a year.
Direct flights stopped
– The risk if we have a more contagious virus is that the lockdown needs to be handled even harder, says oil analyst Helge André Martinsen of DNB Markets.
He says that oil consumption will fall much more if we have to go back to how it was in March and April with major changes in the way we move and gaps in logistics
– If it remains in some European countries, it will not have a great effect on oil demand, but if the virus with the indicated rate of infectivity spreads more, then the risk of a broader global lockdown increases. It will be extremely difficult because Opec + has facilitated production cuts and is in the way of freeing up more production. They probably have a long way to go before they make deeper cuts again, he says.
Many countries, including Norway, have recently stopped all direct flights to the UK. In Norway, the measures are initially applied for two days, but can be extended.
DNTV | Health and Health Services Minister Bent Høie talks about a new variant of the UK virus. The Minister of Health and Health Services, Bent Høie, is at the disposal of the press regarding a new variant of the UK virus. 10:16 Published:
– Very vaccine-driven
DNB Markets’ Martinsen says to keep in mind that the price of oil is at $ 49 a barrel, while by October it was below $ 40 a barrel. In other words, the price of oil is still well above the level it was less than two months ago.
– What we must remember is that the rebound in oil prices has occurred despite the fact that fundamentals seem a bit weaker. Demand in Europe has weakened, while production in Libya has returned. It’s been a very vaccine-driven rally and if you start pushing those conditions you can get a significant correction, he says.
The sharp fall in oil prices brings down the Oslo Stock Exchange. The leading index falls more than two percent on Monday. Oil company Equinor falls more than three percent, while slightly smaller oil producer Aker BP falls about 5.5 percent.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content can only be done with written permission or as permitted by law. For more terms, see here.
