A barrel of WTI closed yesterday at $ 78.39. During the morning and early afternoon of this November 26, 2021, the price fell to $ 68.17.
The news about a new variant of coronavirus they have generated panic in financial markets worldwide. At the beginning of this November 26, 2021, the price of barrel of West Texas Intermediate (WTI), reference for the Ecuadorian crude, was trading at $ 78.39.
However, during the morning and early afternoon, that price fell more than $ 10 to $ 68.17.
The main reason is that the fear grows that the new south african variant notably affect the global economy, because several countries have already announced travel restrictions for passengers arriving from South Africa and from neighboring nations.
These measures, which could be adopted by a large number of countries, will foreseeably affect the volume of shipments, so it is estimated that the demand for “black gold” will decline at a time when production had just begun to increase.
In addition, this week US President Joe Biden announced that he will release 50 million barrels of crude from the Strategic Petroleum Reserve in an initiative together with other major major energy consumers, such as China, India, Japan, Republic of Korea and the United Kingdom, the White House explained in a statement.
«It seems that the discovery of a variant of coronavirus in southern Africa it is scaring markets globally. Germany is already limiting travel from several affected nations in the region, “Again Capital representative John Kilduff explained in a note.
The European stock exchanges panicked: Ibex, Frankfurt, London, Milan, Paris and the Eurostoxx 50, which groups the 50 most important companies in the euro zone, sank 3%, following the wake started by the Asian markets. Similarly, Wall Street has opened lower, with losses of 2% in the Dow Jones and 1% in the Nasdaq technology.
The Ecuadorian budget for 2021 is calculated with a price of crude of $ 59.8 per barrel. During these almost 11 months, the average has been above $ 75, but the income to the fiscal box does not exceed $ 1,600 million.
For 2022, the Government of Guillermo Lasso projected a barrel priced at $ 59.29. (JS)
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