Crude oil rises on demand optimism

January 04, 2022 02:39 PM AEDT | By Arpit Verma

Crude oil rises on demand optimism — Image source: © Tebnad | Megapixl.com

Oil’s bull run beating Omicron’s fear

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 cancelled on Sunday alone.

Infection cases are surging globally, and strict restrictions are being imposed in various countries to curb the spread. The air travel sector is one of the most affected sectors of all.

Additionally, oil has got some support from the ongoing outages in Libya. The output in the region is expected to be cut by 200,000 bpd for a week due to pipe maintenance activity.

Source: © Gumpapa | Megapixl.com

Crude oil prices have made a significant rebound in the last year, ranging from 50-60% due to a solid recovery from the lows of COVID-19 pandemics and deep production cuts by OPEC.

Bottom Line

Crude oil prices rose further ahead of the OPEC+ meeting scheduled on Tuesday. Oil prices settled higher on Monday despite OPEC plans to increase its output in the coming month and rise in Omicron cases.

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