08:51 AM EST, 11/19/2021 (MT Newswires) -- Oil traded at a seven-week low early on Friday on concerns over renewed pandemic restrictions in Europe.
In its final day as the active contract, West Texas Intermediate crude for December delivery was last seen down US$2.41 to US$76.60 per barrel, while January Brent crude, the global benchmark, was down US$2.15 to US$79.09.
The drop came as Austria imposed a nationwide lockdown beginning Monday and reports that Germany is also not ruling out a new lockdown to quell rising Covid-19 infections. The Netherlands has already imposed partial lockdowns measures.
Renewed lockdown measures come on top of concerns the United States and other countries will release supplies from strategic petroleum reserves (SPRs) to quell prices, however Goldman Sachs noted a drop of more than US$6.00 for oil in recent days has fully priced in the move.
"The White House consideration of an SPR release had already pushed Brent down by $4/bbl in recent weeks, with the potential participation of China likely behind the latest additional $2/bbl sell-off that occurred yesterday. On our pricing model, the $6/bbl move lower since late October is already pricing a release of well over 100 mb into DM stocks," the investment bank said in a report.