Oil prices extended gains to about 2% in trading today, Tuesday, with Brent crude rising above $ 72, despite the continued concern of investors about the rapid spread of the Corona virus “Omicron” globally, and the possibility that countries consider more restrictions, which could affect demand. on fuel.
The rise came after a stormy day witnessed by oil prices at the beginning of trading on Monday, as it witnessed a decline of nearly 7%, but it reduced its losses, and ended its trading with a decline of about 3%.
Oil prices today
Brent crude futures prices – for February 2022 delivery – rose by about 1.5%, recording $72.52 a barrel.
The prices of West Texas Intermediate crude futures – February delivery – also rose by 1.8%, recording $69.84 a barrel.
Omicron effect in oil
“After two days of declines, crude oil prices rebounded, despite concerns about the emerging corona virus,” said Edward Moya, chief analyst at OANDA.
“The short-term impact of economic growth from border closures remains unknown, and oil prices will remain sensitive to any stricter travel requirements,” he added.
New Zealand postponed the planned reopening of its international borders due to the sweeping spread of omicron around the world on Tuesday, as several other countries re-imposed social distancing measures.
Several countries were on high alert just days before Christmas and New Year celebrations, with Omicron infections increasing across Europe, the United States and Asia, including in Japan.
However, Moderna Pharmaceuticals Inc said on Monday that a booster dose of its coronavirus vaccine has shown positive results against the rapidly spreading Omicron mutant in lab tests, offering investors some hope.
On the supply front, OPEC+ compliance with oil production cuts rose to 117 percent in November from 116% a month ago, indicating that production levels are still well below agreed targets, Reuters reported.
A preliminary Reuters poll also showed that US crude oil inventories are expected to decline for the fourth consecutive week, while distillate and gasoline stocks likely rose last week.
The poll was conducted before the release of reports from the American Petroleum Institute, scheduled for Tuesday, which precedes the official announcement by the Energy Information Administration, the statistical arm of the US Department of Energy, scheduled for release tomorrow, Wednesday.