DeHaan New Variant Creates Short-term Concern For Oil Investors

It was a rough Thanksgiving week for oil investors as oil prices slipped 13% last week due largely to growing concerns about the new COVID-19 variant, omicron, reported in South Africa. While oil prices dropped, sharply Friday, as did stocks and bonds on Wall Street, the downward trend was relatively short-lived.

“Over the weekend, there were some developments, one doctor in South Africa saying that most of the cases seen were fairly mild," said Gasbuddy’s Patrick DeHaan. "So I think the market there was certainly a heavy amount of selling Friday, which caused some buying back into the market [Sunday] night and into the trading day [Monday].”

DeHaan noted oil prices jumped roughly $3 in Monday’s trade. He added that moving forward, the omicron and any other discovered variants will have the biggest impact on oil prices in the months to come.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekmedia.com