Oil Plunges after Previous Session High

Oil plunges after previous session high

Oil prices witnessed a plunge on Tuesday after making a big leap on the previous day. Interestingly, the prices had jumped more than 8 per cent the last day. However, the correction was anticipated following the huge hike. The vaccine trial news for the coronavirus got the market excited.

The WTI futures slipped to $39.66 by 1.56 per cent, whereas Brent oil futures slid to $41.88, losing 1.23 per cent by 4:22 AM GMT.

Buoyed by the news by Pfizer confirming the trial rate of its vaccine hitting the 90 per cent on the effectiveness quotient, the global market surged up many points. Both the futures of oil crossed the barrier of $ 40 mark after a few weeks, especially the WTI futures.

Notably, prices of oil got boosted with the statement of Prince Abdulaziz bin Salman, energy minister of Saudi Arabia. He suggested to regulate the output of oil from November 30 to December 1.

Meanwhile, the new administration of the newly elected president of the US Joe Biden might allow oil from Iran and Venezuela, which may force the demand and supply game going down the wire and the commodity may further lose its sheen.

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