WTI dives below $70.00, down more than 11%, worst fall since 2020’s negative price debacle

  • WTI has been under severe selling pressure in recent trade and is now under $70.00.
  • That marks a more than 11% decline on the day, its worst session since last year’s negative prices.

Front-month WTI futures have been getting absolutely battered in recent trade and have recently dropped below the $70.00 level. That marks a more than $8.50 decline (over 11%) on the day, its worst such day since the front-month WTI futures contract swung deeply into negative territory in April 2020.

The oil market’s implosion comes on a day when countries across the world have been implementing (or are considering implementing soon) travel restrictions to countries where cases of the new, highly concerning South African Covid-19 variant have been detected. As the new variant spreads, which it is expected to do over the coming weeks, it seems highly likely that further travel restrictions will be imposed. All of this could be catastrophic for jet fuel demand, a key component of global crude oil consumption.

The latest developments in oil markets have not gone unnoticed by OPEC+. According to sources cited by Reuters, the cartel is monitoring developments around the new, concerning Covid-19 variant and some members are expressing concern that it may worsen the outlook for oil markets. The group meets next week to decide on oil production policy and there is already speculation that they might implement new output cuts. The group was already rumoured to be mulling halting its recent run of consecutive monthly 400K barrel per day output hikes in response to the US and other nations' decision to release oil reserves.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD trades below 1.1450 despite disappointing US data

EUR/USD is having a difficult time gathering bullish momentum in the early American session and trades in the negative territory below 1.1450. The US Census Bureau reported on Friday that Retail Sales in December fell by 1.9%, missing the market expectation of a no-change by a wide margin.


GBP/USD drops below 1.3700 as dollar gains traction

GBP/USD stays under modest bearish pressure in the American session and trades below 1.3700. The US Dollar Index is clinging to modest daily recovery gains near 95.00 despite weaker-than-forecast macroeconomic data releases from the US.


Gold fluctuates in daily range above $1,820 after US data

Gold declined to $1,820 during the European trading hours but managed to edge higher toward $1,830 in the early American. The benchmark 10-year US Treasury bond yield retreated from 1.75% after the dismal US data, allowing XAU/USD to gain traction.

Gold News

Dogecoin price on track to hit new highs, rallying 16% with Tesla payments going live

Tesla announced that it accepts Dogecoin and cannot receive or detect any other cryptocurrency. Analysts have predicted an explosive rally in Dogecoin price, continuing the uptrend. 

Read more

Why did TSLA stock fall 7% on Thursday?

Tesla stock dumps on Thursday as tech takes a bath. TSLA shares fell nearly 7% to close at $1,031.56. Tesla support at the short-term pivot remains at $980.

Read more