Oil slumps more than 10 per cent amid market rout

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\u0027This is a huge overreaction in terms of the market,\u0027 one analyst said

The price plunge is the latest dramatic twist ahead of a key OPEC+ meeting next week. After an alliance of consumers announced the release of emergency supply earlier this week, the potential severity of the new coronavirus variant is the latest factor that the group will have to tackle when deciding whether to lift output.

“It’s a sign the market got carried away from itself and that we still remain very vulnerable to COVID-19,” said John Kilduff, founding partner at Again Capital LLC. “This is a huge overreaction in terms of the market,” Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd. said in a Bloomberg Television interview. “This is the market pricing in the worst possible scenarios.”Article content

 

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