Crude Oil WTI Futures Market News and Commentary
January WTI crude oil (CLF22) on Friday closed down -10.24 (-13.06%), and January RBOB gasoline (RBF22) closed down -28.48 (-12.57%).
WTI crude oil and RBOB gasoline prices on Friday sold off sharply, with crude falling to a 2-3/4 month low and gasoline falling to a 3-month low. Energy prices plunged Friday on concern that the emergence of a new Covid variant will force countries to impose lockdowns and travel restrictions that curb economic activity and energy demand.
The emergence of a new Covid variant identified in South Africa hammered energy prices on Friday. Scientists say the new variant carries a high number of mutations that could make it more effective at evading existing vaccines. This new variant may force countries worldwide to impose fresh lockdowns to stop the spread of the virus, and that will decimate energy demand.
Weakness in the crack spread is bearish for crude prices. The crack spread tumbled to a 9-month low Friday, discouraging refine... Read more