Oil prices hit their biggest one-day drop since April 2020 on November 26, WTI fell 13.1%

Oil prices plunged $10 a barrel on Friday, the biggest one-day drop since April 2020, as a new variant of the coronavirus spooked investors and heightened fears of a possible increase in oversupply in the first quarter of
next year, Reuters reported Nov.
26.

Oil prices fell along with global stock markets on concerns that the variant could dampen economic growth and fuel demand
.

The United States, Canada, the United Kingdom, Guatemala and European countries are all restricting travel
from southern Africa, where the variant is found.

Brent crude settled down $9.
50, or 11.
6 percent, to $72.
72 a barrel, down more than 8 percent
.

U.
S.
West Texas Intermediate (WTI) crude fell $10.
24, or 13.
1 percent, to $68.
15 a barrel on Friday, after falling more than 10.
4 percent
for the week in high-volume trading after Thursday's Thanksgiving holiday.

Bob Yawger, head of energy futures at Mizuho, said the market is considering a worst-case scenario in which the variant could cause massive demand destruction
.

The two crude contracts fell for the fifth straight week and the biggest drop since April 2020, when West Texas Intermediate turned negative for the first time due to a supply glut caused by the coronavirus
.

News of the mutated virus caused uproar
in a market that was previously between producing and consuming countries.

Craig Erlam, senior market analyst at OANDA, said the biggest concern is that the variant will become resistant to vaccines, which would be a huge setback
for countries that benefit from vaccine rollouts.

OPEC+ is also closely watching the development of the variant, sources said on Friday, with some expressing concern that it could worsen the outlook for the oil market less than a week before the meeting to set policy
.

South Africa's foreign ministry said it would enter into dialogue with Britain to try to get Britain to reconsider its travel ban
.

South African Foreign Minister Naledi Pandore said in a statement that "we are most concerned that this decision will cause damage
to tourism and commerce in both countries.
"

Earlier this week, the Organization of the Petroleum Exporting Countries and its ally, OPEC+, said they could reduce oil production in response to a strategic release from major oil consumers by the International Energy Agency, raising oil prices as a result
.

According to an OPEC source, such a release could increase supplies
in the coming months, based on the findings of a panel of experts advising OPEC ministers.

The forecasts cast a shadow over the outlook for the Dec.
2 meeting, when the group will discuss whether to adjust its plans to increase production by 400,000 b/d
starting in January.