Returned over $ 70 crude with a jump of 3.7%

Oil continues to rise, with the US contract closing above $ 70 a barrel for the first time in about two weeks as concerns recede that the coronavirus mutation will hit the economy and demand during the winter.

In particular, the January crude contract gained $ 2.56 or 3.7% and closed at $ 72.05 a barrel on the New York Mercantile Exchange after yesterday’s jump of 4.9%. This is the highest closing since November 24, the day the appearance of the micron mutation triggered strong shocks in world markets.

Brent February, meanwhile, strengthened $ 2.36, or 3.2%, to close at $ 75.44 a barrel on ICE Futures, closing higher for a fourth straight session. This is the highest level since November 25.

Investors seem to be less concerned about the coronavirus’s micron mutation as experts appear cautiously optimistic in the last days after the initial numbness. Leading US epidemiologist Dr Anthony Fauci told AFP today that it was “almost certain” that the Omicron variant of the new coronavirus did not cause more serious illness than Delta. He added, however, that people would have to wait “at least two more weeks” to see if the variant would prove less dangerous than Delta.

Investors are now waiting for the data that will be announced tomorrow by the American Energy Agency on the course of the commercial stocks in the USA. Analysts’ average estimates in a poll by S&P Global Platts indicate that crude stockpiles fell by 1.2 million barrels for the week ended December 3. They also forecast an increase in gasoline stocks by 1.4 million barrels and an increase in refined stocks by 900,000 barrels.