Home » Oil splash, WTI hole price $ 70. Prices plummet by 3% after Opec + and Delta variant fear

Oil splash, WTI hole price $ 70. Prices plummet by 3% after Opec + and Delta variant fear

by admin

Bearish acceleration in oil prices, which are already discounting the news of the production agreement reached by OPEC +.

Futures on the New York-traded WTI contract suffered a 3.58% plummet to $ 69.24 per barrel, capitulating below the $ 70 per barrel mark. Brent fell 3.38% to $ 71.06.

The prices reflect the increase in the offer of OPEC +, an alliance between OPEC and non-OPEC countries which, according to the terms of the agreement, will be equal to 400,000 barrels per day starting from August until September 2022.

It should be remembered that the association had launched an unprecedented cut in production last year, equal to a record 10 million barrels per day, to counter the collapse in oil prices triggered by the Covid-19 pandemic.

In recent months, part of these cuts have been withdrawn, bringing the reduction to approximately 5.8 million barrels per day, which will be reset to zero with the new agreement reached by September 2022.

But oil prices also pay off fears for the spread of the Delta variant in the world, and therefore for any new lockdown measures and restrictions that could be launched to stem Covid infections.

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