Oil Up as Omicron and Fuel Demand Fears Ease
Investing.com
Published Dec 06, 2021 10:14PM ET
By Gina Lee
Investing.com – Oil was up Tuesday morning in Asia, after rebounding almost 5% the day before. Concerns about the omicron COVID-19 variant’s impact on fuel demand receded, while talks to revive an Iranian nuclear deal hit a snag.
Brent oil futures were up 0.36% to $73.34 by 10:22 PM ET (3:22 AM GMT) and WTI futures gained 0.63% to $69.93.
Ntsakisi Maluleke, a public health specialist in South Africa’s Gauteng province said over the weekend that patients with the new omicron COVID-19 variant had only shown mild symptoms. U.S. National Institute of Allergy and Infectious Diseases director Anthony Fauci also said, "it does not look like there's a great degree of severity" so far.
“This lowers the probability of the worst-case scenario that the oil markets have been pricing in over the past couple of weeks,” ANZ analysts said in a note.
In another sign of confidence, Saudi Arabia raised the prices to Asia and the U.S for January crude oil earlier in the week. The decision comes even as the Organization of the Petroleum Exporting Countries and allies (OPEC+) stuck to its plan of increasing supplies by 400,000 barrels per day in January at its meeting last week.
The roadblock in indirect U.S.-Iran talks to revive a 2015 nuclear deal will delay the return of Iranian supplies, which gave prices a boost.
"While negotiations could still find success when they recommence later this week, markets may need to consider a more prolonged delay to Iranian oil exports. That’s positive for oil prices and supports OPEC+’s plans to boost oil production through 2022," Commonwealth Bank of Australia commodity analyst Vivek Dhar said in a note.
Investors now await U.S. crude oil supply data from the American Petroleum Institute, due later in the day.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.