- Oil prices soared Wednesday amid conflicting headlines about the efficacy of vaccines and concerns about tighter restrictions on Covid-19.
- But oil prices remain significantly higher during the week amid optimism that Omicron will be neutralized.
Oil prices have been rocking on Wednesday. WTI futures for the first month They move within the range of $ 71.00 – $ 72.70 during the last hours, alternating between gains and losses. The most recent spike in volatility at the time of CME’s oil well opening at 14:00 GMT (when volumes tend to rise) caused the WTI to dip again below $ 72.00 to around $ 71.75, where it trades practically lateralized on the day. But for the week, WTI continues to trade with gains of more than $ 5.0 (almost 8.0%).
Oil markets have risen this week in hopes that the new Omicron Covid-19 variant will be smoother than previous variants, posing less of a threat to the global economic recovery. Headlines about vaccine efficacy have been mixed for the past 24 hours or so. Late on Tuesday, South African scientists published a study showing that two doses of the Pfizer / BioNTech vaccine were only able to partially neutralize Omicron. However, Pfizer and BioNTech published a separate study this morning that essentially suggested that a third booster dose would restore the vaccine’s efficacy in line with the efficacy that two doses had against previous Covid-19 strains.
Risk appetite and crude oil markets have been stirred as a result of the conflicting stories, while oil markets have also picked up on headlines in the UK suggesting that the new Covid-19 restrictions are in place. about to enter. One of them will include a recommendation to work from home, which of course dampens the short-term prospects for UK fuel demand if fewer people are traveling. The UK does not account for a large enough portion of daily global crude oil consumption for this to really matter, but the fear is that states in America’s oil guzzlers may do the same.
Oil traders will be on the lookout for the release of official US weekly inventory numbers at 15:30 GMT. Weekly private inventory data from the US showed a slightly larger-than-expected drop in crude oil stocks of around 3.1 million barrels.
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