Market News The discovery of new strains in South Africa frightens investors! Oil prices plummeted by more than 2%
The discovery of new strains in South Africa frightens investors! Oil prices plummeted by more than 2%
On November 26, U.S. crude oil fell sharply by more than 2%. The new discovery of mutant strains in South Africa caused market panic. In addition, the release of the strategic oil reserve and the expectation of the Fed to switch to the eagle have put pressure on oil prices.
2021-11-26
10207
On Friday (November 26), US crude oil fell sharply. The newly discovered mutant strain in South Africa caused market panic. In addition, the release of the Strategic Petroleum Reserve and the expectation of the Fed to switch to the Eagles all put pressure on oil prices.
South African scientists are studying the recently discovered new variants of the new crown. The country may face the fourth wave of concerns about the impact of the potential epidemic, and it may spread globally.
Before the World Health Organization named it in Greek letters, this newly discovered mutant strain was called B.1.1.529. Tulio de Oliveira, a professor of bioinformatics who used to manage genetic sequence research institutions at two universities in South Africa, said at a press conference on Thursday that this mutant strain carries an abnormally large number of mutations, which is "obviously very large from the previous mutant strain." different".
"This is a mutant strain of serious concern," South Africa's Health Minister Joe Phaahla said at the same media event.
Anne von Gottberg, a clinical microbiologist and director of respiratory diseases at the National Institute of Infectious Diseases of South Africa, said that virologists have so far found nearly 100 cases of this variant strain in South Africa. According to another statement, officials of the World Health Organization have met to discuss the mutant strain, which has also been discovered in Botswana.
Britain will temporarily suspend flights from South Africa and five neighboring countries, and is concerned about the apparently different mutant strain recently discovered in South Africa. In addition to South Africa, the countries where flights are restricted include Namibia, Lesotho, Eswatini, Zimbabwe and Botswana.
"Based on our experience and understanding of Alpha and Delta mutant strains, the sooner we act, the better," said Ewan Birney, a director of the European Molecular Biology Laboratory. "Although in the end it is possible that the threat of this new mutant strain is not as great as the Alpha and Delta variants, the consequences of not taking action in the face of potential effects will be very serious."
British officials said that WHO experts will meet with South African authorities on Friday. The impact of the new variant strain on hospitalization and mortality, and how this variant will interact with the vaccine, may take several weeks to discover.
The newly discovered mutant strain in South Africa triggered risk aversion. WTI crude oil futures recorded the biggest drop in a week, with a drop of nearly 3%, due to market concerns that oil demand will be affected by the epidemic.
(U.S. crude oil daily chart)
An OPEC source said that OPEC expects that the oil reserves released by major oil consuming countries will significantly aggravate the global oversupply situation in the coming months. At present, it is only more than a week before OPEC will hold a meeting to determine the near-term output policy.
This prospect may complicate the decision of OPEC+ formed by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, but several sources said that the suspension of production increases has not yet been discussed.
OPEC's Economic Committee (ECB) met this week, an expert group that advises ministers. The OPEC+ ministerial meeting will be held on December 2.
An OPEC source who asked not to be named said the committee expects the release of reserves to increase the oil market surplus by 1.1 million barrels per day. OPEC has warned in recent days that it expects to have oversupply in 2021.
The source said that if consumer countries continue to release reserves, the surplus is expected to reach 400,000 barrels per day in December, 2.3 million barrels per day in January, and 3.7 million barrels per day in February.
Some market analysts, including analysts at JPMorgan Chase, hinted that OPEC may suspend production after the major consumer countries release reserves.
Goldman Sachs’ strategists stated in a daily report on Thursday that starting from January next year, the Fed may double the rate at which it cuts debt purchases to $30 billion, and end its debt purchases during the epidemic by mid-March. plan.
Analysts headed by Jan Hatzius said in a client report: “The attitude towards accelerating the pace of reduction is becoming more open, which may reflect the slightly higher I feel more assured that it will impact the financial market."
Although the reduction process is expected to accelerate, Goldman Sachs expects that the Fed will not start raising interest rates until June, and will raise interest rates three times in 2022. The U.S. investment bank is one of several banks that recently increased the number of expected interest rate hikes in 2022 from two to three.
South Africa’s recent discovery of a mutated strain of the new crown raises “serious concerns”
South African scientists are studying the recently discovered new variants of the new crown. The country may face the fourth wave of concerns about the impact of the potential epidemic, and it may spread globally.
Before the World Health Organization named it in Greek letters, this newly discovered mutant strain was called B.1.1.529. Tulio de Oliveira, a professor of bioinformatics who used to manage genetic sequence research institutions at two universities in South Africa, said at a press conference on Thursday that this mutant strain carries an abnormally large number of mutations, which is "obviously very large from the previous mutant strain." different".
"This is a mutant strain of serious concern," South Africa's Health Minister Joe Phaahla said at the same media event.
Anne von Gottberg, a clinical microbiologist and director of respiratory diseases at the National Institute of Infectious Diseases of South Africa, said that virologists have so far found nearly 100 cases of this variant strain in South Africa. According to another statement, officials of the World Health Organization have met to discuss the mutant strain, which has also been discovered in Botswana.
Britain will temporarily suspend flights from South Africa and five neighboring countries, and is concerned about the apparently different mutant strain recently discovered in South Africa. In addition to South Africa, the countries where flights are restricted include Namibia, Lesotho, Eswatini, Zimbabwe and Botswana.
"Based on our experience and understanding of Alpha and Delta mutant strains, the sooner we act, the better," said Ewan Birney, a director of the European Molecular Biology Laboratory. "Although in the end it is possible that the threat of this new mutant strain is not as great as the Alpha and Delta variants, the consequences of not taking action in the face of potential effects will be very serious."
British officials said that WHO experts will meet with South African authorities on Friday. The impact of the new variant strain on hospitalization and mortality, and how this variant will interact with the vaccine, may take several weeks to discover.
The newly discovered mutant strain in South Africa triggered risk aversion. WTI crude oil futures recorded the biggest drop in a week, with a drop of nearly 3%, due to market concerns that oil demand will be affected by the epidemic.
(U.S. crude oil daily chart)
The release of the US-led strategic oil reserves will aggravate the oversupply situation next year
An OPEC source said that OPEC expects that the oil reserves released by major oil consuming countries will significantly aggravate the global oversupply situation in the coming months. At present, it is only more than a week before OPEC will hold a meeting to determine the near-term output policy.
This prospect may complicate the decision of OPEC+ formed by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, but several sources said that the suspension of production increases has not yet been discussed.
OPEC's Economic Committee (ECB) met this week, an expert group that advises ministers. The OPEC+ ministerial meeting will be held on December 2.
An OPEC source who asked not to be named said the committee expects the release of reserves to increase the oil market surplus by 1.1 million barrels per day. OPEC has warned in recent days that it expects to have oversupply in 2021.
The source said that if consumer countries continue to release reserves, the surplus is expected to reach 400,000 barrels per day in December, 2.3 million barrels per day in January, and 3.7 million barrels per day in February.
Some market analysts, including analysts at JPMorgan Chase, hinted that OPEC may suspend production after the major consumer countries release reserves.
Goldman Sachs: The Fed will speed up its reduction plan from January
Goldman Sachs’ strategists stated in a daily report on Thursday that starting from January next year, the Fed may double the rate at which it cuts debt purchases to $30 billion, and end its debt purchases during the epidemic by mid-March. plan.
Analysts headed by Jan Hatzius said in a client report: “The attitude towards accelerating the pace of reduction is becoming more open, which may reflect the slightly higher I feel more assured that it will impact the financial market."
Although the reduction process is expected to accelerate, Goldman Sachs expects that the Fed will not start raising interest rates until June, and will raise interest rates three times in 2022. The U.S. investment bank is one of several banks that recently increased the number of expected interest rate hikes in 2022 from two to three.
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