Oil continues to rally as Omicron concerns ease

FILE PHOTO: Oil containers are seen, amid the coronavirus disease (COVID-19) pandemic, in Los Angeles
FILE PHOTO: Oil containers are seen, amid the coronavirus disease (COVID-19) pandemic, in Los Angeles, California, U.S., April 7, 2021. REUTERS/Lucy Nicholson/File Photo

December 9, 2021

By Sonali Paul

MELBOURNE (Reuters) – Oil prices extended their gains on Thursday on confidence that the Omicron coronavirus variant would not affect global growth, even as some governments stepped up curbs to stem the rapid spread. its quick.

U.S. West Texas Intermediate (WTI) crude oil futures were up 28 cents, or 0.4%, to $72.64 a barrel at 0:201 GMT, adding 0.4% in the previous session.

Brent crude oil futures rose 22 cents, or 0.3%, to $76.04 a barrel, adding another 0.5% on Wednesday.

The market was buoyed by comments from BioNTech and Pfizer that their three-shot course of COVID-19 vaccine could protect against infection from the Omicron variant.

“Early indications of the Omicron variant… suggest it may be less severe than initially feared as hospitalization rates have not increased,” said Commonwealth Bank commodity analyst Vivek Dhar.

“The third dose of vaccine is also showing promising signs of protection against the new variant,” he said.

However, the market’s rally was muted as governments re-imposed restrictive measures to limit the spread of Omicron, including Britain ordering people to work from home again, Denmark. The circuit closed restaurants, bars and schools and China halted group tours from Guangdong.

“Risks to demand have not completely subsided,” ANZ analysts said in a note.

The outbreak of Omicron sent Brent prices down 16% between November 25 and December 1. More than half of the decline has been restored this week, but analysts say a further recovery is possible. restricted until the effects of the Omicron became more apparent.

OANDA analyst Craig Erlam said that Brent is likely to face resistance around the lower end of the $76.50-77.50 range, which is a key support in late September and late September. November.

(Reporting by Sonali Paul; Editing by Himani Sarkar) Oil continues to rally as Omicron concerns ease

Bobby Allyn

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