Global oil prices collapsed by more than 10% yesterday, Friday, after a new strain of the Corona virus raised fears that the renewed imposition of general closures would threaten a global recovery in demand, and reinforce fears of a global oversupply inflation in the first quarter of next year.

Oil fell with global stock markets on fears that the new strain would undermine economic growth and fuel demand, with oil prices recording - on Friday - the biggest one-day decline since April 2020.

Yesterday, the World Health Organization classified the new strain as "worrisome" and named it "Omicron".

And countries - including the United States, Canada, Britain, Guatemala and European countries - imposed restrictions on travel from southern Africa, where the strain was monitored.

Brent crude futures fell $9.50, or 11.6 percent, to $72.72 a barrel upon settlement, recording a weekly decline of more than 8 percent.

West Texas Intermediate crude tumbled $10.24, or 13.1%, to $68.15 a barrel after the Thanksgiving holiday in the United States on Thursday, and its drop to less than $70 a barrel is the first since late September.

US crude losses during the week amounted to more than 10.4%.

The sharp decline in prices comes after 3 days of efforts led by the United States, the largest oil consuming country, to withdraw from strategic crude stocks in an attempt to calm the rise in energy prices.

The dollar fell against the rise of the Japanese yen and the Swiss franc (Shutterstock)

And according to Bloomberg news agency, the meeting of the “OPEC +” alliance next week will acquire greater importance, as the group of oil producers - led by Saudi Arabia and Russia - must decide whether to continue to increase supply or stop those increases in response to the recent market volatility.

The discovery of a new strain of the Corona virus - already - prompted the European Union and the United Kingdom to impose restrictions on air travel, and led to sales in all financial markets, although researchers have not yet determined whether this strain is more contagious or deadly. about its predecessors.

Currencies and stocks

While the Japanese yen and the Swiss franc rose - a haven investment - the dollar fell.

Shares of aviation and tourism groups fell as countries announced new travel restrictions, while energy groups posted big losses.

"Stock markets have fallen sharply at a time when fears of a new mutation of Covid-19 will lead to new closures, restrictions on movement and a slowdown in economic growth," said Neil Wilson, chief market analyst at Marketscom Group.

And the major European stock exchanges recorded a decline of at least 3% in the wake of a sharp decline in Asian markets.