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Oil prices achieve weekly gain of 4%

Oil prices

Oil prices have achieved 4% gains during the past week, as the market is waiting the next steps of the OPEC+ group and the impact of the mutant Omicron.

By 0741 GMT, Brent crude futures fell 41 cents, or 0.5%, to $76.44 a barrel, after rising 2.1% in the previous session.

Oil prices rose from the easing of investor fears regarding Omicron, which worries the world.

OPEC+’s meeting

The OPEC+ bloc (Organization of the Petroleum Exporting Countries and its allies) will meet on January 4.

The group is likely to maintain its decision to increase oil supply by 400,000 barrels per day at its next meeting, as long as oil prices remain above $ 70 a barrel, said Chiyuki Chen, chief analyst at Sunward Trading.

“But investors remained cautious amid surging infection cases,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

Coronavirus infections increased significantly in the areas where the Omicron is spread. This prompted many countries to impose new restrictions, including Italy and Greece.

United Airlines and Delta Air Lines announced the cancellation of dozens of flights, with flight crew members and workers have been infected.

Oil prices

“Still, given the soaring natural gas prices in Europe and Asia, oil will likely keep a positive tone on expectations that some industries would switch fuel from high priced gas to oil,” Kikukawa said.

The market’s big gains on Wednesday were partly driven by a larger-than-expected drop in US crude stocks last week.

The United States granted approval for anti-coronavirus tablets, starting at the age of 12, in the first local treatment for the disease to be taken by mouth.

Meanwhile, governments around the world have re-imposed a set of restrictions to limit the spread of Omicron.

But concerns related to the potential impact of movement restrictions on fuel demand receded, because the OPEC+ left the door open to reconsidering its supply plan in January.

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