New York / London – The intense repercussions of the new variant of Covid that came to light from the African continent have boomed on the international economy. Crude oil rates have crashed by 11 to 13%. This has proven as the biggest drop of the year. Along with the US and European stock markets, dollar and US debt bonds have also been hit. Meanwhile, the World Health Organisation (WHO) declared that this new variant is a ‘Variant of Concern’ at a meeting on Friday.
A new variant of the Covid found in two African countries a few days ago has been warned to be the most fatal and dangerous type ever. These warnings have once again created an atmosphere of fear at the international level and started to reflect into the economy. Yesterday Asian stock markets had crashed sharply.
Subsequently, there was a strong reaction in the fuel market. US crude oil rates fell by more than 13%. WTI (West Texas Intermediate) crude rates fell by $10.24 a barrel. This is the biggest drop in a single day since April 2020. The rates of transactions for January were reported as $68.15 a barrel. There was a dip of 11.55% in the crude oil rates in the international markets as well. Crude oil prices have fallen to 72.72 a barrel.
‘It appears that the discovery of a Covid-19 variant in southern Africa is spooking markets across the board. Germany is already limiting travel from several nations in the affected region. The last thing that the oil complex needs is another threat to the air travel recovery,’ said analyst John Kilduff. It has emerged that US and European stock markets have also been hit hard.
There was a record fall in all the three major share indices of the US, the Dow Jones, the Nasdaq Composite and the S&P 500. All three indices are down more than two percent. In Europe, Spain’s index crashed to a staggering five percent, while the French and German stock markets fell more than four percent. The UK stock market has fallen 3.6 percent. Europe’s leading STOXX 600 index fall hit more than three and a half percent. The dollar index of US currency has come down 0.757 percent and the interest rates on debt securities have also fallen sharply.
Meanwhile, at a meeting of WHO on Friday, the new variant that came to light from Africa was named ‘Omicron’. Concurrently, an alert has also been issued that this type is a ‘Variant of Concern’.