WTI Retreats By More Than 11%

WTI crude oil has been under severe selling pressure in recent trade. Oil has settled under $70.00, marking a more than 11% decline on the day, its worst session since last year when future contracts swung deeply into negative territory in April 2020.

The oil market’s implosion comes on a day when countries across the world have been implementing or considering travel restrictions to countries where cases of the new, highly concerning South African Covid-19 variant have been detected.

As the new variant spreads, which it is expected to do over the coming weeks, it seems highly likely that further travel restrictions will be imposed.

All of this could be catastrophic for jet fuel demand, a key component of global crude oil consumption.