Oil down by nearly 2% as omicron variant fears continue to reverberate

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WTI right down to $68.50 ranges on the day

Of observe, the drop again beneath $70 and the 200-day shifting common (blue line) close to the determine stage retains sellers in management, with yesterday’s mild rebound proving to be a lifeless cat bounce – extra so now after the Moderna CEO headlines hit.

If vaccines aren’t going to be efficient in managing the unfold of the omicron variant, will probably be powerful to think about a world the place we hit the reset button again to the beginning of the 12 months.

I do not think about governments internationally could be too eager on that.

Certain, certain. Banchel has some perverse incentive in relation to making such feedback however the common temper out there since Friday hasn’t been good to start with.

This simply brings out the concern that’s residing deep throughout the market.

Going again to grease, whereas all this will likely show to be a hiccup within the long-run, there is not a rush to actually get into longs in the meanwhile – not when omicron fears are nonetheless ever current and the volatility might nonetheless prolong for a lot of extra weeks.

The August lows slightly below $62 could also be a key goal for sellers if danger trades proceed to be hit onerous within the meantime.

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