Brent oil price slumps under $80

Oil prices recorded their steepest daily fall since July on Friday as a new COVID-19 variant spooked investors and added to concerns that a supply surplus could swell in the first quarter.

Brent crude fell $4.07, or 4.9%, to $78.15 a barrel by 0830 GMT, Reuters reported.

U.S. West Texas Intermediate (WTI) crude was down $4.83, or 6.1%, at $73.56 a barrel, after hitting a two-month low during the session. There was no settlement for WTI on Thursday because of the Thanksgiving holiday.

Investors were also watching China's response to the U.S. release of millions of barrels of oil from strategic reserves in coordination with other large consuming nations, part of its bid to cool prices. read more

Such a release is likely to swell supplies in coming months, an OPEC source said, based on findings of a panel of experts that advises ministers of the Organization of the Petroleum Exporting Countries. read more

The Economic Commission Board expects a surplus of 400,000 barrels per day (bpd) in December, rising to 2.3 million bpd in January and 3.7 million bpd in February if consumer nations went ahead with the release, the OPEC source said.

The forecasts cloud the outlook for a Dec. 2 meeting of OPEC and its allies, known as OPEC+, when the group will discuss whether to adjust its plan to increase output by 400,000 bpd in January and beyond.