Crude oil rises despite an increase in coronavirus cases

2 min read | January 06, 2022 01:27 PM AEDT | By Arpit Verma

Crude oil rises despite an increase in coronavirus cases — Image source: © Designer491 | Megapixl.com

US Federal Reserve’s move

The oil market pared its gains after the US Federal Reserve stated that policymakers may have to increase rates more quickly than expected. Crude oil along with other risk assets like stocks tumbled significantly following the announcement.

The US has reported nearly 1 million new coronavirus cases on Monday, the highest daily reported cases by any country and nearly double the peak witnessed in the last week.

OPEC+ agrees to stick to its planned increase of 400,000 bpd of oil output in the coming month too, as they have done every month since August 2021.

OPEC

Source: © Gumpapa | Megapixl.com

However, the group's plan looks quite difficult as various members including Angola, Libya, and Nigeria are facing difficulties in increasing their production.

Bottom Line

Crude oil prices rose on Wednesday after hitting the mark of US$80 per barrel on Tuesday despite rising cases of coronavirus and OPEC’s move to increase the output for the coming month.

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