Oil prices are in decline after a report that raises doubts about the effectiveness of vaccines

Oil prices fell more than 3% today, Tuesday, after the CEO of Moderna Pharmaceuticals raised doubts about the efficacy of Covid-19 vaccines in the face of the new Corona virus mutation, Omicron, which has scared financial market participants and raised concerns about oil demand.

Moderna Pharmaceuticals’ president told the Financial Times that the Covid-19 vaccines were unlikely to be as effective against Omicron as they were against the previous mutant, Delta.

Brent crude futures fell $ 2.37, or 3.2%, to $ 71.07 a barrel at 13:12 GMT, the lowest since September 1.

The price of West Texas Intermediate crude oil futures fell $ 2.22, or 3.19%, to $ 67.73 a barrel, the lowest since August 26.

According to prepared statements, Federal Reserve (Central Bank of the United States) Chairman Jerome Powell will tell Congress today that the new mutation could disrupt the economic recovery.

The price of oil fell about 12% on Friday, with other markets in decline, for fear that the spread of the new mutant will cause a new wave of closure and limit global growth, which will damage the demand for oil.

With uncertainty surrounding oil demand, expectations grow that the OPEC + group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia, will suspend its plans to add 400,000 barrels. per day every month in January.

Pressures have already increased on OPEC +, which meets on December 2, to reconsider its production plan after the United States and other major consumer nations pulled back emergency reserves last week to curb price increases.

Read More About: Business News