Oil plunges $10/bbl on new coronavirus variant concerns | Reuters

Oil plunges $10/bbl on new coronavirus variant concerns | Reuters

Oil prices plunged about $10 a barrel on Friday, their largest one-day drop since April 2020, as a new COVID-19 variant spooked investors and added to concerns that a supply surplus could swell in the first quarter.

Oil fell with global equities markets on fears the variant could dampen economic growth and fuel demand.

Britain and European countries have restricted travel from southern Africa, where the variant was detected, as researchers sought to find out if the mutation was vaccine-resistant. read more The World Health Organization has designated the new variant as "of concern," according to the South African health minister.

Brent crude fell $9.21, or 11.2%, to $73.02 a barrel by 11:51 a.m. EST (1651 GMT).

U.S. West Texas Intermediate (WTI) crude was down $10.10, or 12.9%, at $68.29 a barrel, after Thursday's Thanksgiving holiday in the United States.

Both contracts were heading for their fifth week of losses and their steepest falls in absolute terms since April 2020, when WTI turned negative for the first time.