Oil dropped below $71 for the first time since September

During trading on Tuesday, Brent oil quotes declined to $70.23 per barrel. The $71 level was broken for the first time since September 10. American WTI oil is also showing a decline – to the level of $67.09 per barrel. 

Subsequently, prices recovered somewhat. The current Brent quote is $71.22 per barrel, WTI oil is $68.05.

Pressure on the market was exerted by the US statement that Washington does not intend to reconsider its decision to release oil from the country's strategic reserve, despite the fall in prices due to the appearance of a new omicron strain Covid-19. Recall, on November 23, the United States announced the release of 50 million barrels of oil from strategic reserves in order to reduce fuel prices for Americans. In addition to the States, India, Japan, South Korea and the United Kingdom made a similar decision.

Prices for «black gold» are also declining amid concerns caused by the spread of a new strain of coronavirus. The head of the drug manufacturer Moderna shared his doubts about the effectiveness of existing coronavirus vaccines against the omicron strain. 

At the same time, due to the uncertain prospects for oil demand, expectations are growing that OPEC + will abandon the planned increase in oil production by 400 thousand barrels per day in January. And if the organization still decides to pause in increasing production, the oil market will receive a significant driver for strengthening.