Middle East

Brent crude rises towards $ 77

Brent crude rose to $ 77 on Monday. This is because we expect the Omicron COVID-19 variant to have a limited impact on global demand in 2022, even under pressure from flight cancellations in the case of a surge in US oil. is.

Over 1,300 flights were canceled by US airlines on Sunday as COVID-19 reduced the number of crew available and some cruise ships had to cancel their berths.

Brent crude, the world benchmark, rose 76 cents (1%) to $ 76.90 by 1505 GMT. US West Texas Intermediate (WTI) crude fell 22 cents (0.3%) to $ 73.57. The US market was closed due to a Friday holiday.

He added that the differences between Brent and WTI may reflect the ongoing global recovery.

“Worker isolation, especially the disruption of goods and services from air travel, seems to be the main impact so far,” he said of the increase in Omicron cases. “It’s only likely to cause short-term nerves, and the story of the global recovery in 2022 is still on track.”

Brent rose more than 45% this year, supported by a recovery in supply and demand cuts by OPEC and its allies (collectively OPEC +).

Oil plunged by more than 10% on November 26, when reports of new variants first appeared, increased last week after early data suggested that Omicron could cause milder levels of illness.

Leona Liu, an analyst at Singapore-based Daily FX, said:

Talks resume today between world powers and Iran on resurrecting Tehran’s 2015 nuclear deal. Iran said on Monday that oil exports were the focus of the negotiations, but so far it seems that little progress has been made in increasing Iran’s shipments.

Also, investors are paying attention to the next OPEC + conference on January 4th, when the Producers Alliance will push forward with the planned production increase of 400,000 barrels (bpd) per day in February. I will decide.

OPEC + stuck to that plan at its last meeting to increase production in January, despite Omicron.

(Additional report by Florence Tan and Koustav Samanta, edited by David Goodman and Louise Heavens)

https://www.oedigital.com/news/493122-brent-oil-rises-toward-77 Brent crude rises towards $ 77

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