(Bloomberg) -- Oil advanced after two days of declines as investors assessed the outlook for energy demand amid the rapid spread of omicron.
Futures in New York climbed above $69 a barrel after tumbling on Monday as prices were swept up in a broader slide in financial markets on concerns about rising virus infections and a setback for President Joe Biden’s economic plan. While the omicron variant of the virus hasn’t had a big impact on demand so far, there are fears that it may lead to renewed lockdowns.
Crude’s rebound from the pandemic has faltered toward the end of the year, in part due to the emergence of the new Covid-19 strain ahead of winter. The oil market structure is flashing bearish signs, indicating near-term over-supply, which may require OPEC+ to act when they meet early in 2022.
Omicron accounted for 73% of all Covid-19 infections last week in the U.S., according to Centers for Disease Control and Prevention data. Almost all of the remaining cases were of the delta strain. London hospitalizations were 34% higher than a week ago and the city canceled a New Year’s Eve event.
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