Oil prices ease as the new coronavirus variant spreads

Gulf Today Report 

Oil prices fell on Thursday as investors worry about the effect of raising coronavirus cases on demand.

Brent crude oil futures fell 18 cents, or 0.3%, to $55.88 a barrel while US West Texas Intermediate (WTI) slipped by 11 cents, or 0.2%, to $52.80 a barrel.

Stephen Innes, chief global market strategist at Axi said: "oil market's sizzling rally likely took a hiatus as the stronger dollar and the omnipresent gasoline supply overhang offset the evaporating US crude inventories." 

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Oil prices rise due to inventory draw

Last week, US crude oil stockpiles last week declined beyond expectation while gasoline and distillate inventories gained.

Across Europe governments are imposing tighter lockdowns due to the spread of the new variant and China, the world’s second-largest oil consumer announced its biggest daily jump of coronavirus cases in more than 10 months.

According to an International Energy Agency (IEA) official, oil producers face an unprecedented challenge to balance supply and demand as factors including the pace and response to COVID-19 vaccines cloud the outlook.