Middle East

Oil prices hold close to $ 80 with a tight supply,

December 29, 2021

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Oil prices on Wednesday remained close to $ 80 a barrel as global outages and lower US inventories offset concerns that increased coronavirus could reduce demand.

Brent crude rose to $ 79.20 a barrel and then fell 24 cents to $ 78.70 by 1427 Greenwich Mean Time. US West Texas Intermediate (WTI) crude oil fell 32 cents to $ 75.65 after reaching $ 76.17.

Both contracts, backed by the strength of global equities, trade near their highests in a month.

“The market is overwhelmingly pricing the latest coronavirus variants as a milder incarnation, despite its ease of contractility,” said Jeffrey Halley, an analyst at OANDA. rice field.

“Investors continue to tentatively price global recovery as market activity declines significantly during the holiday season, with a small rise rather than a pothole.”

U.S. oil inventories fell 3.1 million barrels in the week ending December 24, according to data from the American Petroleum Institute, market sources said in line with expectations of nine analysts surveyed by Reuters late Tuesday. rice field.

Weekly data from the US Energy Information Administration is scheduled for late Wednesday.

Oil prices have been supported by Ecuador, Libya and Nigeria proclaiming force majeure as part of oil production this month due to maintenance issues and oil field closures.

Russia’s Deputy Prime Minister Alexander Novak said from Washington to increase production because OPEC +’s producer group does not want to deviate from the policy on gradual increase in production, providing clear guidance to the market. He said he resisted the call.

Investors are waiting for the OPEC + meeting on January 4, and the alliance will decide whether to plan to increase production by 400,000 barrels per day in February.

At the last meeting, OPEC + stuck to plans to increase production in January, despite the widespread use of Omicron variants.

(Report by Dmitry Zhdannikov, Mohi Narayan, Naveen Thukral, edited by Emeria Sithole-Matarise and David Goodman)

https://www.oedigital.com/news/493168-oil-prices-hold-near-80-on-tight-supply-and-stocks-drop Oil prices hold close to $ 80 with a tight supply,

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