Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil At Two-Month Lows As New COVID-19 Variant Emerges

By Kevin BeckmanMarket OverviewNov 26, 2021 09:22AM ET
www.investing.com/analysis/oil-at-twomonth-lows-as-new-covid19-variant-emerges-200609645
Oil At Two-Month Lows As New COVID-19 Variant Emerges
By Kevin Beckman   |  Nov 26, 2021 09:22AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Oil failed to get back above the 20-DMA earlier in the week, with the selling pressure intensifying on Friday amid a widespread risk aversion that was triggered by a spike in concerns about a new COVID-19 strain that was first identified in South Africa. The news added to worries about a more intense rise in supply surplus next quarter as global fuel demand would ease if the pandemic intensifies again.

Against this backdrop, Brent crude lost over 5% to plunge two-month lows around the $76 figure before bouncing marginally. The market is also weighted by a release of strategic reserves by large consumer nations, including the United States, China, India, and Japan, to cool oil and gas prices. However, according to the latest reports, despite the pressure from Washington to do more, Beijing said it would release its oil reserves according to its needs.

Meanwhile, the US dollar stays elevated amid spiking bets on a rate hike by the Federal Reserve amid stubbornly high inflation and solid economic fundamentals. A powerful rally in the greenback adds to bearish drivers in the oil market these days. Now, the market focus is gradually shifting towards the upcoming OPEC+ meeting due next Thursday. As the latest reports show, the alliance is not considering pausing its current plan to increase oil production by 400,000 barrels per day every month.

Ahead of this major event, volatility could pick up further in the coming days, while virus-related news will affect the prices. The path of least resistance is to the downside at this point, with the next support arriving at $75,65, followed by the $74.50 area. On the upside, Brent crude needs to regain the $80 figure to retarget the mentioned SMA today at $81.60.

Oil At Two-Month Lows As New COVID-19 Variant Emerges
 

Related Articles

Oil At Two-Month Lows As New COVID-19 Variant Emerges

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email