International oil prices are rising amid optimism that the coronavirus’s Micron mutation may not prove as scary as it initially seemed, easing concerns about the prospects for “black gold” demand.
In New York, US crude futures exceeded $ 70 a barrel, after jumping almost 5% on Monday.
Initial data show that the emergence of Omicron did not put pressure on health systems, but has already led to travel restrictions that have affected the demand for aircraft fuel. At the same time, companies submitted bids on Monday for the crude that the US is expected to release from its strategic reserves.
In China, oil imports hit a three-month high in November after new refinery quotas were set, according to Beijing government figures.
Crude is recovering from the losses of the previous six weeks, which were associated with the emergence of the new Covid mutation, but also due to the movement of top consumers to move to strategic stocks in order to hold prices. Saudi Arabia’s move to raise oil prices for January 2022 gave the market strong confidence that demand will remain dynamic, notes Bloomberg.
“It is possible that there will be an upward movement if the optimism remains intact, but with elements of intense volatility,” said Vandana Hari, founder of Vanda Insights. “The investment climate will remain highly dependent on the slightest news of the potential destructive power of Omicron.”
The global benchmark, Brent oil delivery in February, rose 1.6% to $ 74.21 a barrel, having risen 4.6% on Monday, while on the other side of the Atlantic, American WTI crude delivery in January gained 1.7% to $ 70.69 a barrel, while on Monday it had gained 4.9%.
The release of part of the strategic crude stockpile is part of an effort by the government of US President Joe Biden to control gasoline prices. Those who will “win” the auction for the 32 million barrels will not be announced publicly until December 14, however, two major international refiners have already expressed interest, Bloomberg sources said, knowing the issue.
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