COM - OIl sinks 5% on fear of new COVID variant stifling demand

Crude prices and energy stocks are taking it on the chin as the concerns about a new COVID-19 variant raising questions about global growth. WTI crude (CL1:COM) (NYSEARCA:USO) is down 6%, nearing $73/barrel and Brent (CO1:COM) is down 5.7%. WTI hasn't been below $74/barrel since late september. Energy (NYSEARCA:XLE) is the worst-performing S&P sector in premarket trading, sinking 8%. Occidental Petroleum (NYSE:OXY), Marathon Oil (NYSE:MRO), Devon Energy (NYSE:DVN) and Diamondback Energy (NASDAQ:FANG) are all down more than 7%. Among the majors, BP (NYSE:BP) is off 6% in London trading. ExxonMobil (NYSE:XOM) is down 6%, ConocoPhillips (NYSE:COP) is down 5% and Chevron (NYSE:CVX) is off 5%. Oil prices had already been in focus with a coordinated release of reserves led by the United States to combat higher prices in the face overall strong inflation. OPEC said the before today's action that the U.S. move would swell supply in 2022.

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OIl sinks 5% on fear of new COVID variant stifling demand