This morning, oil prices decreased on new expectations of increasing energy supplies, as natural gas and coal producers respond to rising energy prices the winter. With the UN ending their climate talks in Scotland and COVID-19 cases rising around the country, the market is shaken up. WTI crude fell over $0.96, or just over 1%. Crude oil this morning opened at $80.66, diesel at $2.4010, and gasoline at $2.3110.
With United Nations talks ending on Saturday, news started to circulate that a deal was discussed which pinned global warming heavily on fossil fuels. The two-week meeting in Scotland focused specifically on climate change, and several sessions focused on how to curb emissions enough to limit environmental impacts. According to reports, the negotiators reached a consensus that emissions must fall around 45% by 2030 if the world wants to have a chance at limiting the warming to 1.5 degrees Celsius. The negotiators agreed that in their estimations, they expect emissions to rise over 14% in the next nine years, so “something must be done.” To date more than 100 countries have pledged to cut their emissions by 30% no later than 2030, a feat that is much easier said than done.
Adding to market volatility is the familiar COVID-19 virus, which has seemed to spark back up in areas of Europe. Some major governments such as China have considered reinstating unpopular lockdowns to stop the spread. Austria alone has one of the highest infection rates in the world right now, with around 100,000 people infected per seven days. With lower vaccination rates in many European countries comes the threat of new cases arising. With vaccinations becoming increasingly popular across the globe, the expectation is that countries with lower vaccination rates will need to increase their vaccinated population to suppress the health scare that comes along with the virus.