Brent Slumps Under $80

Brent slid nearly 4% to below $80 a barrel on Friday as a new Covid-19 variant spooked investors, adding to concerns that a global supply surplus could swell in the first quarter following the release of crude reserves by the United States and others.
Oil fell in tandem with other financial markets on fears that the new variant could slow economic growth and restrict movement again, Reuters reported.
Brent crude futures extended declines for a third session, falling $3.16, or 3.8%, to $79.06 a barrel. WTI crude was down $3.45, or 4.4%, at $74.94 a barrel. There was no settlement for WTI on Thursday because of the Thanksgiving holiday.
"Oil prices have gapped lower in Asia as the South African variant sparks' growth fears, sending a wave of selling through Asian energy markets," Jeffrey Halley, a senior analyst at brokerage OANDA, said in a note.
Also in focus is China's response to US President Joe Biden's administration announcing plans on Tuesday to release millions of barrels of oil from strategic reserves in coordination with other large consuming nations to try to cool prices.
Such a release is likely to swell supplies in coming months, an OPEC source said, according to the findings of a panel of experts that advises ministers of the Organization of Petroleum Exporting Countries.