December 21, 2020
Prices of crude oil and oil-related ETFs are falling on Monday after a new strain of Covid that was uncovered in the U.K. generated new travel restrictions across Europe and worries that there may be more lockdowns globally, potentially hampering demand for fuel.
Futures tied to West Texas Intermediate, the key U.S. crude measure, sank as low as $46.25, or over 6% Monday, before scrambling back toward $48 a barrel in early afternoon trade. International bellwether, Brent crude oil, tumbled 4.1% to $50.10 a barrel, its sharpest one-day drop since October.
The U.K. government said the new strain seemed to be more contagious than the prior known strains, disseminating 70% faster than earlier mutations. It has locked down parts of the country, including London, as a result.
Correction In The Oil Market Is Quite Likely (NYSEARCA:USO)
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