Crude Oil closes higher on news on Ômicron outperforming stocks data

Oil closed on a high this Wednesday (8). A more positive balance of news regarding the Ômicron variant of the coronavirus allayed concerns about the possibility of restrictions being implemented around the world, while the weakness of the dollar lent more support to the commodity.

The lower-than-expected drop in US stocks last week, however, limited gains.

On the New York Mercantile Exchange (Nymex), a barrel of WTI crude for January delivery rose 0.43% ($0.31) to $72.36, while Brent crude for February advanced 0.50% (US$0.38) on the Intercontinental Exchange (ICE), at US$75.82.

According to analyst Edward Moya, from Oanda, the oil gained momentum this morning with the news that Pfizer’s vaccine retains efficacy against the Ômicron strain after a regimen of three doses of the product.

Earlier, preliminary data from a study conducted in South Africa indicated lesser protection of the immunizer after two doses, information confirmed by tests carried out by the company.

The improved demand for oil in the futures market came despite the adoption of new restrictions on activity in the UK due to the pandemic, in addition to a “lower-than-expected drop in US oil inventories” and higher-than-expected increases in oil inventories. derivative products, comments TD Securities.

The Canadian investment bank estimates contracts are likely to rise above $80 a barrel, supported by the likely “slowdown on increased supply, continued recovery in demand and added consumption during the winter” in the northern hemisphere. The assessment contrasts with analysis published by the Department of Energy (DoE) on Wednesday.

Commenting on the US stocks data, Capital Economics highlights that the drop this Wednesday occurred despite a new increase in daily average production, which reached 11.7 million barrels – the highest since May 2020, according to the consultancy.

“Demand remains solid despite the increase in covid-19 cases. Unless travel restrictions are re-imposed, we expect US oil demand to remain firm in the coming months.”