Middle East

Oil prices are easier with holiday trade and markets

Brent crude futures recorded a three-day rise in Friday’s light holiday trading, but the market is focusing on the next steps by OPEC + and the impact of Omicron variants, and the benchmark is still on a weekly rise. I was heading.

Brent crude oil futures fell 41 cents (0.5%) to $ 76.44 a barrel by 0741 GMT after rising 2.1% in the previous session. The benchmark was still on track, with an increase of about 4% per week.

The US market is closed on Fridays due to Christmas holidays.

This week, oil prices recovered with early data suggesting that infectious Omicron variants have receded concerns about the impact on the global economy and cause mild illness.

“This is a typical holiday market,” said Chen Chiyoki, chief analyst at Sunward Trading.

“Concerned about the impact of Omicron’s decline, the market focus shifted to OPEC +’s next move at the January meeting,” he said.

OPEC +, including OPEC and Russia, stick to the decision to increase monthly oil production by 400,000 barrels / day (bpd) at the next meeting, as long as oil prices exceed $ 70 a barrel. There is likely to be. , Chen added.

The group will meet next January 4th.

Still, some investors remained cautious amid a surge in infections.

Health experts said Omicron made progress around the world on Thursday, despite two pharmaceutical companies saying the vaccine is protected from it, and despite the signs that the risk of hospitalization is low. Warned that the fight against the COVID-19 variant is not over yet.

Coronavirus infections have surged wherever subspecies spread, causing new restrictions and recording new cases in many countries, including Italy and Greece.

The increase in the number of rigs in the United States has also added pressure to the oil market.

According to energy services company Baker Hughes, US oil and gas rig operations have risen to their highest levels since April 2020 in the last week. The total number is currently 586 and production may increase in the coming months.

“However, given the soaring prices of natural gas in Europe and Asia, oil is positive in response to expectations that some industries will switch fuels from high-priced gas to oil,” said Hiroyuki Kikukawa, Research General Manager, Nissan Securities. Will keep a good attitude. “

Prices for liquefied natural gas (LNG) in Asia soared this week, despite sluggish demand in Asia, as rising risks in the European gas market remain a major driver of price volatility.

Global oil demand surged in 2021 when the world began to recover from the coronavirus pandemic, and global consumption was new in 2022, despite efforts to reduce fossil fuel consumption to mitigate climate change. May set a record.

(Report by Yuka Obayashi, edited by Muralikumar Anantharaman and Gerry Doyle)

https://www.oedigital.com/news/493104-oil-prices-ease-in-holiday-trade-market-focus-on-next-opec-move Oil prices are easier with holiday trade and markets

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