# New COVID Variant Causes Oil To Plunge As Demand Picture Clouds

> Oil prices plunged as a new COVID variant clouded the demand outlook. NYMEX December gasoline fell 18.98 cents to $2.1299 per gallon, and the diesel contract dropped 20.31 cents to $2.1799 per gallon. Pump prices were expected to follow over several days or weeks.

- Date: 2021-11-29 · published 2021-11-29T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/7525-new-covid-variant-causes-oil-to-plunge-as-demand-picture-clouds
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

Lower crude and diesel prices reduce input and freight costs for feed production, though the outlook depends on how far new travel restrictions spread.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼
- DIESEL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DIESEL | 2021-12-01 | 5 | -13.2% | -4.2 | The diesel contract fell about 20 cents as the new variant clouded the demand outlook, directly showing the price drop. |
| DIESEL | 2021-11-26 | 1 | -6.2% | -4.5 | It reports the diesel contract plunging with crude as the new variant clouded the demand outlook, confirming the mechanism, though the figures differ slightly and the article is dated after the move. |
| BRENT | 2021-12-01 | 5 | -15.6% | -5.2 | Product prices fell as the variant clouded the demand outlook, showing the sell-off spread through the energy complex. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2021-07-20 | [Oil extends decline as concerns over Covid-19 variant mount  \| The National](https://feedsoft.ai/events/6366-oil-extends-decline-as-concerns-over-covid-19-variant-mount-the-national.md) | +8.5% | +1.4% |
| WTI | 2020-04-20 | [US oil prices turn negative as demand dries up](https://feedsoft.ai/events/4480-us-oil-prices-turn-negative-as-demand-dries-up.md) | -32.4% | +73.9% |
| WTI | 2021-04-21 | [Oil prices drop as India’s COVID-19 surge dents demand outlook \| Reuters](https://feedsoft.ai/events/47759-oil-prices-drop-as-india-s-covid-19-surge-dents-demand-outlook-reuters.md) | +0.7% | +4.7% |
| WTI | 2024-10-15 | [Oil plunges 4% as Iran supply disruption concerns ease, demand outlook weakens](https://feedsoft.ai/events/28029-oil-plunges-4-as-iran-supply-disruption-concerns-ease-demand-outlook-weakens.md) | -5.8% | -7.4% |
| WTI | 2020-03-30 | [Crude oil futures drop as pandemic darkens demand outlook](https://feedsoft.ai/events/5321-crude-oil-futures-drop-as-pandemic-darkens-demand-outlook.md) | +64.1% | -28.3% |
| BRENT | 2021-07-20 | [Oil extends decline as concerns over Covid-19 variant mount  \| The National](https://feedsoft.ai/events/6366-oil-extends-decline-as-concerns-over-covid-19-variant-mount-the-national.md) | +8.2% | +1.2% |
| BRENT | 2020-04-20 | [US oil prices turn negative as demand dries up](https://feedsoft.ai/events/4480-us-oil-prices-turn-negative-as-demand-dries-up.md) | -21.7% | +34.7% |
| BRENT | 2021-04-21 | [Oil prices drop as India’s COVID-19 surge dents demand outlook \| Reuters](https://feedsoft.ai/events/47759-oil-prices-drop-as-india-s-covid-19-surge-dents-demand-outlook-reuters.md) | +0.6% | +4.4% |

## Sources

- forbes.com: https://www.forbes.com/sites/daneberhart/2021/11/29/new-covid-variant-causes-oil-to-plunge-as-demand-picture-clouds/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.