Oil prices are falling today and there’s a couple of reasons why that investors are going to want to know about!
The drop in oil prices comes on the heels of two recent bits of news. The first is the return of coronavirus fears overseas. Europe is dealing with an increase in cases and further restrictions are being placed on the unvaccinated by some countries.
That news means that we’re likely to see less travel as people stay inside out of fear of the virus. Of course, that also means lower demand for gas, which leads to the lower oil prices we’re seeing today.
But that’s not the only reason why oil prices are falling today.
Another factor behind today’s drop has to do with talks between China and President Joe Biden. China is planning to release some of the country’s oil reserves and it comments from President Biden seem to suggest the U.S. will do the same.
In addition to that, President Biden has also been calling for further investigation into oil prices. That includes allegations of price gouging at gas stations that the President wants to Federal Trade Commission (FTC) to investigate, reports Barron’s.
This news today saw oil prices drop below $79 a barrel. That’s much better than the $82.24 per barrel it was priced at earlier. We could also see prices continue to fall as OPEC+ expects supply to overtake demand in early 2022.
That makes sense as holiday travel is likely to keep oil prices from falling too low in 2021. Even with Covid-19 fears, people are still going to travel and that increase in demand might keep oil prices elevated through December.
Investors seeking more stock market news today will want to keep reading!
InvestorPlace has all the latest stock coverage that traders need to know about today! That includes what’s happening with shares of AquaBounty (NASDAQ:AQB), Greenland Technologies (NASDAQ:GTEC), and Mammoth Energy Services (NASDAQ:TUSK) on Friday. You can find out more about that at the following links!
More Stock Market News for Friday
- AQB Stock Alert: Why Shares of AquaBounty Are Taking a Deep Dive Today
- GTEC Stock Alert: The Big EV News Sending Greenland Tech Racing Higher
- TUSK Stock: The EV Charging Station Deal That Has Mammoth Energy Stampeding Higher Today
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.