Oil rises in price on recession of panic over omicron coronavirus strain

by time news

The cost of Brent crude oil futures for delivery in February 2022 rose by 4.9% – to $ 73.34 per barrel as of 22.44 Moscow time, according to trading data from the ICE intercontinental exchange.

Futures for Texas WTI crude oil for January delivery rose 5.2% to $ 69.7 per barrel.

Analysts polled by Reuters believe that the recovery in oil prices after falling last week is caused by a recession in panic over the emergence of a new strain of the coronavirus “omicron”. Initially, many industry experts expressed concerns that the new option could prove more dangerous and force countries to impose new restrictions, which would lead to a decrease in fuel demand.

However, later, data began to appear that the new variant was not more dangerous than its predecessors. So, on the eve of the WHO said that infection with the omicron coronavirus strain, according to preliminary data, causes a milder course of the disease, which reassured investors.

“Traders are starting to move away from the initial panic around the omicron strain. The oil market now seems convinced that higher prices are warranted, ”Rystad Energy analyst Louise Dixon told the agency.

In addition, the agency continues, a positive contribution to pricing was made by “cooling” concerns about the growth of oil exports from Iran amid the start of negotiations to restore the nuclear deal with the United States.

Last week, the participants in the OPEC + oil agreement decided not to change their plans to restore oil production and maintain growth rates at 400,000 barrels per day, which also had a positive effect on prices. At the same time, before that, the United States and a number of other countries decided to sell part of oil from strategic reserves in an attempt to stop the rise in fuel prices.

The omicron strain was discovered in southern Africa in the first decade of November. According to the World Health Organization (WHO), this variant of the virus has 32 mutations – more than all previously known. The RAS has already stated that there is currently no need to modify coronavirus vaccines for the new strain.

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