Following the doubts expressed on the efficacy of COVID-19 vaccines against the Omicron coronavirus variant by Moderna’s CEO, Stephane Bancel, oil prices crashed more than 3% earlier today.
Bancel had expressed to newsmen that the COVID-19 vaccines do not seem to be as effective against the Omicron variant as they were against the the Delta variant.
A Singapore oil trader who chose to remain anonymous stated that the oil market was already weak, and the CEO’s comments were just a needed catalyst for the market.
As the previous week ended, oil plunged around 12% as other markets feared that the Omicron variant would trigger a fresh lockdown and have a negative impact on global market, thereby crashing oil demand.
WHO, had disclosed on Monday that the effect of the Omicron variant cannot be predicted yet, noting that it is still uncertain if the vaccines will take it down.
However, expectations are growing that the OPEC+ (Russia and its allies) will put on hold its plan to supply 400,000 barrels per day by January.
