🔽 Oil plunges below Friday's lows on fears that vaccines are ineffective against Omicron
The Chief Executive Officer of Moderna said during today's Asian session that it is probable that currently available vaccines will turn ineffective against a new coronavirus variant - Omicron. Earlier comments from Pfizer CEO suggested that it will take around 2 weeks to assess whether the current vaccine will be useful in combating new variants. There is a lot of uncertainty over Omicron. Almost everybody agrees that it is more highly transmissible than the previous variant. However, there are some disagreements on severity with some researchers saying that it seems to cause only mild symptoms.
However, if it turns out to be the opposite - Omicron to be more severe - there is a high risk of new restrictions being imposed that will limit mobility. In such a scenario oil demand may plummet and halt post-pandemic demand recovery. Data from Austria, where full lockdown was imposed, shows that mobility in the country dropped below pre-pandemic levels.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Oil continues to drop and briefly traded below Friday's lows. Price seems to be supported by the 78.6% retracement of a recent upward impulse. Nominal range of the largest correction in the ongoing upward impulse has been broken. However, price still did not exceed the relative range of correction from Autumn 2020 - 24%. Should history repeat itself, a 24% correction would push oil down to the $64.75 area. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
