Oil Caps Biggest Selloff of Month on Virus, Manchin Fallout
- Covid-19 cases climbing worldwide due to new virus variant
- WTI prompt spread flips into contango on demand worries
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Oil posted its worst single-day rout this month on growing concern over the rapid spread of the omicron virus variant and turmoil for President Joe Biden’s economic plans.
Futures in New York closed down 3.7%, trading around $68 a barrel, as the January contract expired on Monday. Pessimism prevailed across financial markets as rising infections prompted restrictions on travel, while U.S. economic sentiment took a hit after Biden’s $2 trillion spending package was derailed by the surprise revolt of Senator Joe Manchin.