Oil Rally Unravels On New COVID-19 Lockdowns

Oil prices lost gains early this week after a new strain of Covid-19 is threatening the global demand recovery. Chart of the Week Demand for transportation fuels (gasoline, distillates, and jet fuel) was down 11% during the Thanksgiving holiday compared to the holiday week a year earlier. Jet fuel, however, was down by nearly half, or a decline of about 0.9 mb/d. There were about 107,000 flights during the week of Thanksgiving, down about 45% from 2019 levels. Market Movers ConocoPhillips (NYSE: COP) announced a significant oil discovery in the…