Goldman Sachs: Oil Market Reaction To Omicron Is Excessive

The plunge in oil prices in recent days was excessive, and traders “far overshot” the potential impact of the Omicron Covid variant on global oil demand, pricing in a massive 7-million-bpd slump, Goldman Sachs said on Wednesday. Oil prices collapsed on Friday after the WHO qualified Omicron as a “variant of concern,” with markets anxious about the still unknown characteristics of the new strain, especially if it escapes existing vaccine protection. Oil just saw in November its worst monthly drop since the start of the pandemic…