Oil prices climb as worries over fuel demand recede

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NEW DELHI: Oil prices prolonged good points on Tuesday with prices buying and selling close to the day before today’s one-month excessive on hopes that the Omicron coronavirus variant can have a restricted affect on fuel demand.

Brent crude rose 7 cents, or 0.1%, to $78.67 a barrel, by 0728 GMT. U.S. West Texas Intermediate (WTI) crude rose 17 cents, or 0.2%, to $75.74 a barrel, gaining for a fifth straight session.

“Worries relating to Omicron are easing throughout the globe, leading to some optimism over demand… Prices are anticipated to commerce with optimistic bias,” mentioned Abhishek Chauhan, head of commodities at Swastika Investmart Ltd.

England won’t get any new COVID-19 restrictions earlier than the top of 2021, British well being minister Sajid Javid mentioned on Monday, as the federal government awaits extra proof on whether or not the well being service can address excessive an infection charges.

However, the upside to prices remained restricted after greater than 1,300 flights had been cancelled by U.S. airways on Sunday as COVID-19 diminished the variety of accessible crews whereas a number of cruise ships needed to cancel stops.

China’s native symptomatic coronavirus circumstances rose for a fourth consecutive day on Monday, with Xian reporting extra infections in a flare-up that has put town’s 13 million residents below lockdown.

Oil prices have risen round 50% this 12 months, supported by recovering demand and provide cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively identified as OPEC+.

“Volumes are skinny due to holidays, and markets have already digested Omicron issues. So, the main target is on the January 4 assembly of OPEC+,” Ajay Kedia, director at Kedia Commodities mentioned.

Investors are awaiting an OPEC+ assembly on Jan. 4, at which the alliance will resolve whether or not to go forward with a deliberate 400,000 barrels-per-day manufacturing improve in February.

At its final assembly, OPEC+ caught to its plans to spice up output for January regardless of Omicron.

Money managers raised their internet lengthy U.S. crude futures and choices positions within the week to Dec. 21, the U.S. Commodity Futures Trading Commission mentioned on Monday.

The speculator group raised its mixed futures and choices place in New York and London by 4,634 contracts to 259,093 through the interval. – Reuters



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