Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Crude Oil at Two-Week Highs; Omicron Fears Ease

CommoditiesDec 07, 2021 10:04
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters

By Peter Nurse -- Oil prices climbed to their highest levels in two weeks Tuesday, extending the previous session’s hefty gains, on growing confidence the impact of the new Omicron Covid variant on global demand will be limited.

By 9:55 AM ET (1455 GMT), U.S. crude futures traded 3.1% higher at $71.61 a barrel, while the Brent contract rose 2.4% to $74.84. Both benchmarks posted gains of just under 5% on Monday.

U.S. Gasoline RBOB Futures were up 2.% at $2.0831 a gallon.

The discovery of the Omicron coronavirus variant has likely curbed oil consumption in Asia and Europe as countries rushed to limit travel from the affected areas in an attempt to slow the spread of the virus.

However, reports coming out of South Africa, where the new variant was first discovered, and the U.S. indicate Omicron cases have only shown mild symptoms, suggesting these travel limitations may be short-lived.

“The critical thing is going to be how much more travel restrictions are we going to get in the next couple of weeks,” Amrita Sen, chief oil analyst at consultant Energy Aspects said in a Bloomberg TV interview. “There’s lots of pent up demand.”

Also helping the tone was trade data out of China, the largest importer of crude in the world. Exports rose by 22% year-over-year, less than the 27.1% increase in October, but what really stood out were China's imports, which jumped 31.7% from a year ago after a 20.6% increase in October - oil imports were at three-month highs.

Elsewhere, talks between European nations and Iran on saving the 2015 Iran nuclear deal are set to resume on Thursday in Vienna, according to Iranian news agencies.

The talks on how to resuscitate the agreement under which Iran limited its nuclear program in return for relief from economic sanctions, and thus its ability to export more crude, broke off on Friday.

The U.S. government releases its Short-Term Energy Outlook at 12 PM ET, while the American Petroleum Institute will publish its weekly oil inventory data at 4:30 PM ET as usual.


Crude Oil at Two-Week Highs; Omicron Fears Ease

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
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.
Continue with Google
Sign up with Email