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Highlights
- Crude oil prices rose on Tuesday.
- OPEC+ agrees to stick to its planned increase of 400,000 bpd of oil output in the coming month.
- The sudden rise in the spread of the Omicron variant of coronavirus has dented the charm of Christmas and New Year.
Brent crude oil prices hit the mark of US$80 per barrel on Tuesday, the highest since November as OPEC along with its allies decided to stick with its original plan to increase the output for February. The significant decision to increase the output was based on the indications that the Omicron variant of coronavirus would have a mild impact on global oil demand.
March delivery Brent Crude oil futures last traded at US$80.18 per barrel up 0.02%, whereas February delivery WTI crude oil futures traded 0.23% up at US$77.17 per barrel as of 05 January 2022 at 12:28 PM AEDT.
OPEC’s plan for February
OPEC+ agrees to stick to its planned increase of 400,000 bpd of oil output in the coming month.
Source: © Gumpapa | Megapixl.com
The White House welcomed the decision by OPEC+ to continue to increase the output which is going to support economic activity by keeping energy prices at a reasonable level.
Apart from this people being hospitalized in Britain with COVID-19 were showing less severe symptoms whereas in France various sectors were being disrupted by the rapid surge in the spread of Omicron variant cases.
The Omicron variant of coronavirus has brought a record number of cases globally, dimming the charm of the new year, with more than 4,000 flights canceled on Sunday alone.
Meanwhile, Libya's state oil firm stated on Saturday that the country's overall output will be reduced by 200,000 bpd for a week due to maintenance on the main pipeline.
Bottom Line
Crude oil surpassed the mark of US$80 per barrel on Tuesday after the OPEC+ decided to increase the output for February based on the indications that the Omicron variant would have a minor impact on the energy demands.