There are oil wells in California.
David McNew is a photographer.
After the United States released some crude from its strategic oil reserve, oil prices were headed for a weekly loss.
After South African scientists said they had detected small numbers of a new variant of COVID-19 that could prove more transmissible, investors dumped crude oil futures and equities on Friday in favor of perceived safe-haven assets.
Scientists told reporters at a news conference that the variant has a "very unusual constellation of mutations" that may affect the body's immune response. The World Health Organization is holding a meeting Friday to discuss the new variant.
The UK banned flights from six African countries in response to the new variant on economic growth. Europe was the focus of concern in recent weeks as COVID-19 cases surged, leading to restrictions in Austria, Italy and other countries. The WHO warned that the coronaviruses could kill more than one million people by March.
West Texas Intermediate crude was 6.8% lower at $73.00 a barrel, setting for their biggest one-day fall since July.
The small factor was the release of the SPR earlier in the week. Ole Hansen, a commodities strategist at Saxo Bank, said on the bank's daily podcast Friday that if we start to see another lock out and see demand getting hurt, we can very quickly go from a very tight market to an oversupplied market.
It makes it more difficult for the group when they meet next week.
A number of other countries are considering freeing up their own strategic inventory.
The Organization of the Petroleum Exporting Countries and its partners, such as Russia and Oman, have been wary of stepping up coordinated output increases, given that market watchers expect an overhang of unwanted fuel to develop next year.
The group of major oil producers will meet next week to discuss supply policy and will increase crude production by 400,000 barrels a day. It's unlikely to increase the pace now that a new variant could threaten air travel.
The advisory board of the Organization of the Petroleum Exporting Countries believes the surplus could grow to as much as 3.8 million barrels a day in February.
"This could prompt the Organization of the Petroleum Exporting Countries to not increase its oil production any further in January and to consider expanding supply by a smaller amount in the months thereafter," Fritsch said in a note.
Business Insider has an original article.
