Oil sheds 7%, hits 2-month low on coronavirus variant fears

Oil prices slumped 7% on Friday, deepening losses for the third day in a row and hit a 2-month low, due to global demand fears after a new coronavirus variant emerged, which the scientists call Botswana.

US crude fell 7% to the lowest since September 23 at $72.63 a barrel, after opening at $78.08, and hit a high at $78.15, and Brent crude fell more than 6.1% to the lowest since September 30 at $77.27a barrel, after opening at $82.23, and hit a high at $82.25.

US crude lost 0.4% yesterday, posting its second straight daily loss due to fears over the US oversupply, and Brent crude edged higher by 0.1%.

The UK warned from the spread of a new variant that was first discovered in Botswana, and scientists confirmed that it contains a high number of mutations.

Scientists confirmed that the variant may lead to further spreading of the coronavirus, according to the Independent newspaper.

Scientists said that the new variant has 32 mutations in the spike protein, which would help it escape more easily from the human immune system and spread quickly.

These negative news come at a time when Europe is facing the spread of the fourth wave of the pandemic, with some countries, such as Austria, re-imposing a full lockdown again.