Oil prices are on their way to their biggest weekly gain since late August, with market sentiment boosted by easing concerns about the impact of the Ômicron coronavirus strain on global economic growth and fuel demand.
The Brent and WTI types were headed up about 7% this week, their first weekly gain in seven weeks, even after a brief profit-taking session.
Brent oil futures rose 0.4%, or US$0.31, to US$74.73 a barrel, at 8:37 am EDT, after falling 1.9% on Thursday (9).
US West Texas Intermediate (WTI) futures rose $0.46, or 0.6 percent, to $71.43, after falling 2% in a volatile session the day before.
Earlier in the week, the oil market recovered about half of the losses incurred since the Ômicron outbreak on Nov. 25, with prices rising as early studies suggest that three doses of Pfizer’s Covid-19 vaccine offer protection against the Ômicron variant.
However, price pressure is being applied by faltering domestic air traffic in China, due to tighter travel restrictions and declining consumer confidence after repeated small surges.
Meanwhile, ratings agency Fitch downgraded real estate developers China Evergrande Group and Kaisa Group, citing offshore bond defaults.
This reinforced fears of a possible slowdown in China’s housing sector, as well as the economy as a whole in the world’s biggest oil importer.
In addition, headlines about a Japanese study showing Ômicron is four times more transmissible than the Delta variant also generated some sales, said OANDA analyst Jeffrey Halley.
Reference: CNN Brasil
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