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US English

Oil prices fall further on Covid-19 vaccine uncertainty

By Jenal Mehta

12:23, 30 November 2021

Oil rig barrel and rig on US currency
Oil falls further on uncertainty regarding future lockdown measures – Photo: Shutter Stock

Oil prices are extending losses after dropping more than 10% Friday on concerns over the impact of the Omicron variant.

Brent crude oil and US Crude oil traded at around $71.41 and $68.11 respectively.

The declines follow comments by Moderna chief executive Stéphane Bancel. He told the Financial Times that existing vaccines maybe less effective in protecting against new coronavirus strains and that it may require months to mass produce an Omicron–specific vaccine.

This has created uncertainty regarding future lockdown measures, dampening the demand prospects of oil. Prior to recent events, Organization of the Petroleum Exporting Countries (OPEC) had already warned about a potential supply surplus in the new year.

US Natural Gas traded below $4.60 per million British thermal units, a 5% decline since Monday, although demand continues to be strong. Cold weather in Europe has left the region struggling to keep inventories. The US has been exporting record volumes of liquid natural gas (LNG) to Europe and Asia, as global dependency on US LNG has been high since the start of the year, as per US Energy Information Administration

Silver

24.83 Price
+0.430% 1D Chg, %
Long position overnight fee -0.0195%
Short position overnight fee 0.0113%
Overnight fee time 22:00 (UTC)
Spread 0.020

Gold

2,029.71 Price
+0.640% 1D Chg, %
Long position overnight fee -0.0194%
Short position overnight fee 0.0112%
Overnight fee time 22:00 (UTC)
Spread 0.50

Oil - Crude

76.50 Price
+1.620% 1D Chg, %
Long position overnight fee -0.0211%
Short position overnight fee -0.0008%
Overnight fee time 22:00 (UTC)
Spread 0.030

Oil - Brent

81.43 Price
+1.460% 1D Chg, %
Long position overnight fee -0.0103%
Short position overnight fee -0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.032

Performance

Brent Crude Oil

  • Day range: $70.36 – $75.36
  • 52 week range: $46.82 – $86.70
  • One week change: -13.44%
  • One month change: -14.89%
  • Six month change: 3.68%
  • One year change: 49.72%

US Crude Oil

  • Day range: $67.06 – $71.22
  • 52 week range: $43.92 – £83.83
  • One week change: -9.61%
  • One month change -13.23%
  • Six month change: 7.35%
  • One year change: 56.51%

US Natural Gas

  • Day range: $4.56 - $4.95
  • 52 week range: $2.26 – $6.47
  • One week change: -7.19%
  • One month change: -15.04%
  • Six month change: 54.39%
  • One year change: 59.96%
three month price changes Three month percentage price change – Credit: Koyfin

Read more: Omicron scare pushes global risk assets lower

Markets in this article

Oil - Brent
Brent Oil
81.433 USD
1.17 +1.460%
Oil - Crude
Crude Oil
76.503 USD
1.216 +1.620%
Natural Gas
Natural Gas
2.9300 USD
-0.022 -0.750%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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