Ole Hansen, head of commodity strategies at Saxo Bank, believes that the emergence of a more contagious strain of coronavirus could lead to a drop in oil prices due to possible new lockdowns. By the evening of December 23, Brent crude is trading at $51 per barrel on the London ICE stock exchange, but in the morning the price dropped to $49.
“The optimism about vaccines and monetary stimulus, which drove the dollar down, was a key factor in the rampant speculation in the markets, including the oil one. And while oil prices will continue to rise in 2021, the short-term outlook for oil has worsened, Mr. Hansen said.
“There is a risk that Brent will rebound by 10%, to $46 a barrel, before finding support.”
In December, the Brent price consolidated above $50 per barrel. This is the best indicator since March. After news of the mutation of the coronavirus in the UK, during trading on December 21, European stocks fell 3.5-4.6%.