Oil is back to March levels, down more than 6% today

Rapid drop in oil prices

There is a line of thinking that oil demand will not be hit hard by the new variant. According to Capital One, the impact of the delta in the third quarter was an estimated 410,000 barrels per day drop in global demand.

We rate a lot worse than that for omicron, but it’s hard to take the lead until we get more clarity on OPEC and Iran. For what it’s worth, it was from a WSJ reporter:

As for oil, it is currently in free fall, falling to $ 65.25, where it was trading in March.

The peak-low delta was at $ 61.76 and it suddenly seems quite achievable.

oil per day

Everything is messed up right now as Powell signals that he won’t come to the rescue.

If there is no hope from OPEC we will see another drop, but I tend to think it would be a drop worth buying. Until then, it’s hard to beat the price action of crude.

However, if / when it starts climbing again, it will be a long climb up to $ 85.

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