Investing

Oil Up, Concerns About Omicron Impact Continue to Fall By Investing.com


© Reuters.

By Gina Lee

Investing.com – Oil was up Monday morning in Asia, as fears over the omicron COVID-19 variant’s impact on the economic recovery and fuel demand continue to ease.

rose 1.52% to $76.29 by 10:26 PM ET (3:26 AM GMT) and jumped 1.59% to $72.81. Both Brent and WTI futures gained around 8% last week, the first weekly gain in seven.

“Market sentiment has improved as the threat of the omicron variant has receded. WTI futures will probably test its recent high of $73.34 and then try to rise towards $78, the level before the Omicron fears led to a sharp sell-off in late November,” Fujitomi Securities Co Ltd. analyst Toshitaka Tazawa told Reuters.

While scientists continue researching omicron, U.K. Prime Minister Boris Johnson warned that the U.K. could face a “tidal wave” of omicron infections.

However, investors remained cautious due to the U.S.-led coordinated release of crude reserve and tensions between Russia and Ukraine.

The U.S. Department of Energy said on Friday it will sell 18 million barrels of crude oil from its strategic petroleum reserve (SPR) on Dec. 17, continuing its strategy to reduce gasoline prices.

On the geopolitical front, the Group of Seven warned Russian President Vladimir Putin that there would be “massive consequences” should Russia attack Ukraine. Russia could be planning a multi-front offensive on Ukraine as early as next year, involving up to 175,000 troops, according to U.S. intelligence.

Meanwhile, Iraqi oil minister Ihsan Abdul Jabbar said on Sunday he expected the Organization of the Petroleum Exporting Countries will continue its current policy of gradual monthly increases in supply by 400,000 bpd at its next meeting in January 2022.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button