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Oil rises and recovers part of the losses from the previous session, keeping an eye on the micron

The futures contracts of Petroleum closed up around 2% after plunging last week. THE commodity recovered some of the losses, with news offering a better perspective on the new variant of the coronavirus, omicron.

WTI, however, failed to retake the $70-a-barrel mark after losing steam towards the end of the session.

WTI crude for January closed up 2.64% (+$1.80) at $69.95 a barrel on the New York Mercantile Exchange (Nymex), and Brent for February rose 2.28% (+US$1.63), at US$73.22 a barrel, on the Intercontinental Exchange (ICE).

Last Friday (26) markets panicked amid concerns about the demand for oil with the arrival of the omicron strain and the consequent travel restrictions imposed between countries.

Rystad Energy assessed the massive asset sale as a mistake and pointed out that the move was reminiscent of April 2020.

Analyst Louise Dickson says the risk of new lockdowns it has taken a back seat in the oil negotiations until danger seems imminent.

For her, the biggest risk to the demand for the oil is in the China, which, since the peak of cases with the delta variant, has already proven that it will do whatever it takes to contain the advance of Covid-19 no country.

Today, the American president Joe Biden he said he did not see the need to expand travel restrictions at the moment and assured that a new one is not in the plans. lockdown. At a meeting between health ministers of the G7, the group reinforced the need to act urgently.

Due to the virus, the meeting of the Organization of Petroleum Exporting Countries and Allies (OPEC+) has been postponed to Thursday of next week, December 9, reported the Reuters. The cartel has yet to formally confirm the postponement.

Market economist Thomas Mathews, from Capital Economics, points out that factors related to the supply of oil and not directly related to the variant, such as the release of stocks by countries, probably also weighed on the prices of the commodity recently.

Mathews still assesses that the relationship between oil prices and inflation in USA must go weaker than in the past.

“So if, for example, news about the virus pushed oil prices down even further, we suspect that inflation offsets would continue to hold up a little longer than during similar drops in oil prices in the past,” he says.

In the US, an official said the country could release more barrels of its oil reserves if the need arises, as reported by CNBC.

Russian Vice Prime Minister Alexander Novak, in turn, said that the country does not currently see the need for any urgent action in the commodity market due to the new strain, as reported by Tass.

Reference: CNN Brasil

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