EnergyWatch

Optimism rises on oil market

"Worries regarding Omicron are easing across the globe, resulting in some optimism over demand," analyst tells Reuters.

Photo: CHRISTIAN HARTMANN/REUTERS / X90079

Oil prices continue to show signs of gains despite a slight fall between Monday afternoon and Tuesday morning, reports Reuters.

A barrel of European reference oil Brent trades for USD 78.68 against USD 78.81 Tuesday afternoon. US benchmark crude West Texas Intermediate sells concurrently for USD 75.77 against USD 75.84.

This small decline in prices should be seen in the context of general appreciations on both Brent and WTI from a respective levels of USD 75.63 and USD 73.08 per barrel on Dec. 23 at 5 p.m. CET.

Rising prices are tied to the global spread of the Omicron variant, which has not led to societal closures as serious as anticipated.

"Worries regarding Omicron are easing across the globe, resulting in some optimism over demand ... Prices are expected to trade with positive bias," says Abhishek Chauhan, head of commodities at Swastika Investmart Ltd, to the news agency.

Such optimism is amplified by the UK's health minister having said that the country will not impose more severe restrictions until more information is gathered on strain to the national heathcare system.

On the other hand, 1,300 canceled flights from the US and rising Covid-19 infection in China dampen the demand outlook.

Now the market is peering ahead to Jan. 4, when the Organization of Petroleum Exporting Countries and its OPEC+ allies convene to draft plans to boost daily output with 400,000 barrels of oil in February.

Elsewhere in commodities, one troy once of gold sells Tuesday morning for USD 1,811.27 against USD 1,812.88 Monday afternoon.

Oil prices rise as Omicron spreads 

Oil continues gain despite Omicron measures after US inventories fell beyond forecast

 

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