Oil plummets, slides 7% as vaccination politics worsens pandemic outlook in Europe

On Thursday, both US and UK crude oil contracts had witnessed their steepest intra-session plunge since last Summer, sliding as much as 7 per cent over fresh concerns of a pandemic resurgence

by Sourav D
Oil plummets, slides 7% as vaccination politics worsens pandemic outlook in Europe

On Thursday, both US WTI (West Texas Intermediate) and Brent crude futures’ prices had stretched out their recent round of losing streak into a fifth straight session, having been plunged by the most in a session since last Summer as worries escalate following a third wave of epidemic in Europe, while a stronger American currency had added to further strains.

In point of fact, in the day’s steep loses in crude oil contracts’ prices were almost entirely prompted by a rise in pandemic cases in Europe with hundreds of millions of people in the 26-member bloc favouring Pfizer or Moderna instead AstraZeneca's pandemic vaccine which the British pharmaceutical had developed in collaboration with the Oxford University, while a renewed lockdown in France appeared to have escalated market worries.

If truth is to be told, with politics dictating the terms of people’s confidence on a certain pandemic vaccine candidate, Europe’s planned vaccination campaign had backpedalled as Europeans prefer awaiting US-borne vaccines instead AstraZeneca’s cheaper alternatives, which in effect had led to a resurgence in pandemic cases, suggested analysts.

Alongside this, multiple remarks from WHO (World Health Organization) and European health regulators offsetting concerns of AstraZeneca’s pandemic vaccine safety, appeared to have barely had an impact. Amid such chaotic immunization drive against the pandemic in Europe, multiple euro zone countries including Poland and Sweden had momentarily stalled AstraZeneca’s pandemic vaccine, as France along with Germany have been met with a steep headwind while inoculating people with Oxford-AstraZeneca pandemic vaccines, while soaring pandemic cases had forced a number of European economies to reimpose lockdown measures, stoking frets of a crude oil demand-crunch.

Oil falters as renewed lockdown in Europe underscores demand worries

Citing statistics, in the day’s commodity market closure, UK crude futures’ prices were plunged 6.9 per cent to $63.28 per barrel, while US WTI crude jolted 7.1 per cent to $60 a barrel.

Meanwhile, referring to a raft of stiffer lockdown measures reimposed in major European economies, a partner at Again Capital LLC in New York, John Kilduff said, “A best-case scenario for demand recovery had been priced into this market. Everyone was celebrating the vaccine rollout and reduced restrictions”.

Europe Crude Oil