Middle East

Oil prices rise, but Omicron worries about Ringer

Oil prices rebounded after a sharp drop in the previous session as investors’ desire for risk improved on Tuesday, but remained cautious as variants of the Omicron coronavirus spread rapidly around the world. did.

Brent crude rose 84 cents (1.2%) to $ 72.36 a barrel by 1117 GMT, and West Texas Intermediate (WTI) crude rose 95 cents (1.4%) to $ 69.56 a barrel.

Edward Moya, senior analyst at OANDA, said:

Countries across Europe were looking for new restraints as fast-moving variants of Omicron swept the world a few days before Christmas, disrupting travel plans and disturbing financial markets.

Omicron infections are spreading rapidly across Europe, the United States, and Asia, including Japan, where a single cluster of military bases has grown to at least 180 cases.

“This is a viable market where we want to be bullish, but we know that relief rallies like this morning won’t last long,” said Tamas Barga, an oil analyst at PVM Oil Associates, a London brokerage firm.

“The upside is likely to be limited, and new sales will meet more restrictions,” he added.

Nonetheless, Moderna Inc said on Monday that booster vaccination with the COVID-19 vaccine appears to prevent rapidly spreading Omicron variants in laboratory tests, giving investors some hope.

On the supply side, OPEC +’s compliance with oil production cuts rose from 116% last month to 117%, two sources in the group told Reuters that production levels were well below the agreed target. Is shown.

In the United States, crude oil inventories were expected to decline for the fourth straight week, but last week it is likely that distillation and gasoline stockpiles have increased, a Reuters preliminary study said Monday.

The survey was conducted prior to reports from the American Petroleum Institute, an industry group scheduled for Tuesday, and the EIA, the US Department of Energy’s statistical department, scheduled for Wednesday.

(Report by Bozorgmehr Sharafedin in London, additional report by Jessica Jaganathan in Singapore, edited by Kirsten Donovan)

https://www.oedigital.com/news/493008-oil-prices-rise-but-omicron-worries-linger Oil prices rise, but Omicron worries about Ringer

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