AUS
NZ
UK
CA
USA
IND
Highlights
- Crude oil prices rose on Tuesday.
- The prices of Brent Crude oil recovered more than 50% in 2021.
- The US government has increased its oil demand forecast and lowered its oil output growth estimates.
Crude oil prices rose nearly 4% on Tuesday due to tight global supplies and on expectations that the rising cases of Omicron variant will not affect oil demand and worldwide demand recovery.
March delivery Brent Crude oil futures last traded at US$83.87 per barrel up 0.29%, whereas February delivery WTI crude oil futures traded 0.34% up at US$81.50 per barrel as of 12 January 2022 at 12:42 PM AEDT.
Waning Omicron’s fear
Jerome Powell, Chair of US Federal Reserve, anticipated the impact of Omicron to be short-lived.
The prices of Brent Crude oil recovered more than 50% in 2021, and the current year could be a significant one as the demand recovered further to pre-pandemic levels.
Source: © Tebnad | Megapixl.com
OPEC, along with its allies, together known as OPEC+, is slowly easing record output cuts made in the last year.
A significant rise in prices has been witnessed in the last few weeks due to ongoing supply disruptions in Libya and Kazakhstan's turmoil.
Earlier in the last week, US crude oil stocks dropped by nearly 1.1 million barrels due to robust demand, as per the American Petroleum Institute estimates.
Meanwhile, the US government has increased its oil demand forecast and lowered its oil output growth estimates.
Bottom Line
Crude oil prices rose nearly 4% on Tuesday on expectations that the impacts of Omicron to be short-lived and would not dent the global economic recovery. The prices were additionally fueled by Kazakhstan's turmoil and Libyan oil supply disruptions.