This morning, international Brent crude oil prices are nearing $75 as new concerns over the virus and decreasing stockpiles threaten the market. With demand slowing down from fears of travel over the virus, the market is responding as expected. Today crude oil opened at $71.48, diesel at $2.2345, and gasoline at $2.1409.
This week the Fed gave a new economic outlook that gave many positives to consumers. During their positive economic outlook, they stated starting in January they would be buying $60 billion of bonds each month. This is $30 billion less than previously agreed to for January. With their positive messages, buying of bonds, and lower unemployment rate, the market seems to be on a positive trajectory, but the Omicron variant is starting to take center stage globally.
This week has not been a good look for COVID-19, as new details around the world start to worsen the situation. In Britain and South Africa, record daily cases are being reported. America’s top health officials warned yesterday of an impending tidal wave of new cases over the next month as more people refuse to get vaccinated. This week in the NFL more than 75 players have been sent home with positive cases, something not seen for quite some time. This week alone has more combined cases in the league that in the first three months of the season. With new cases comes the possibility of threatening demand around the world, as more countries are starting to impose tighter restrictions on travel.
As the holiday season enters its peak for Christmas next week, many Americans are rattled as to whether they should even travel to see family and friends. While Omicron may seem like uncharted waters, this is nothing the world has not been through before. If the past two years have showed us anything, its that there is a refusal to quit amongst the majority. This will not last forever, this is just another temporary roadblock that will be surpassed going forward.