Middle East

Oil rises to $ 82 as demand recovery is on track


January 11, 2022

Credits: Destina / Adob ​​eStock

Oil on Tuesday rose to about $ 82 a barrel, supported by tight supply, hoping that an increase in coronavirus cases and the spread of Omicron variants would not undermine global demand recovery. I am.

Due to lack of production capacity in some countries, OPEC’s additional supply is below the increase allowed under agreements with its allies. Major economies have avoided returning to a serious blockade, despite the surge in cases of coronavirus.

Brent crude rose $ 1.14 (1.4%) to $ 82.01 a barrel at 1134 GMT after a 1% drop in the previous session. West Texas Intermediate (WTI) rose $ 1.16 (1.5%) to $ 79.39 after falling 0.8% on Monday.

“Omicron hasn’t caused a delta-type turmoil yet, and it may not happen. It’s putting a global recovery on track,” said Jeffrey Halley, an analyst at brokerage firm OANDA. rice field.

Brent rose 50% in 2021 and recovered further in 2022. Investors are seeing rising demand, and OPEC and its ally OPEC + are slowly mitigating record production cuts in 2020.

Libya’s power outages are also supporting prices and production is rising, but National Oil Corp. said Tuesday that it had stopped exporting from the EsSider terminal.

“Increased domestic oil production does not directly lead to an increase in the available oil supply,” said Carsten Fritsch of Commerzbank. “This may explain why oil prices have not yet responded to the reopening of Libyan oil fields.”

The depreciation of the US dollar also helped support oil as it tends to make oil cheaper for people holding other currencies and reflect investors’ willingness to risk.

As a further indication of tight supply, the latest reports on US inventories are expected to show that crude oil reserves have fallen by about 2 million barrels.

The first supply report of the week from the American Petroleum Institute (API) has expired at 2130 GMT.

(Additional report by Sonali Paul of Melbourne and Koustav Samanta of Singapore, edited by David Evans and Jason Neely)

https://www.oedigital.com/news/493377-oil-rises-to-82-as-demand-recovery-seen-on-track-despite-rising-omicron-cases Oil rises to $ 82 as demand recovery is on track

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