Crude oil rises as concern eases over Omicron Variant

Highlights

  • Crude oil price climbs nearly 5% on Monday.
  • Brent crude oil gained nearly 38% in 2021.
  • Saudi Arabia increased the selling price of all crude grades to the US and Asia.

Crude oil prices climbed up by about 5% on Monday in hopes that the Omicron variant of coronavirus is less economically destructive if its symptoms are mild. Earlier, South Africa reported that the cases in the country had mild symptoms.

February delivery Brent Crude oil futures last traded at US$73.32 per barrel down 0.42%, whereas January delivery WTI crude oil futures traded 0.65% up at US$69.94 per barrel as of 7 December 2021 at 12:11 PM AEDT.

Oil’s significant journey

Both the crude oil benchmarks tumbled fell for a sixth week in a row in the last week. However, the prices of Brent crude oil gained nearly 38% in 2021. The significant rise in the prices is underpinned by output curbs led by the OPEC+ producer group. Though the prices have fallen from a three-year high of US$86 in October.

Ihsan Abdul-Jabbar, Iraq’s Oil Minister believes that the prices of crude oil will reach above US$75 per barrel.

Adding to this, on Sunday Saudi Arabia increased the selling price of all crude grades to the US and Asia by up to 80 cents from the previous month.

OPEC

Source: © Gumpapa | Megapixl.com

The Organization of the Petroleum Exporting Countries along with its allies, together known as OPEC+ decided to go with its plan of increasing the production by 400,000bpd in January.

Bottom Line

Crude oil prices made a solid jump of nearly 5% on Monday in hopes that the new variant of coronavirus would not be devastating if its symptoms are mild.

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