Oil prices continued their rally on Monday amid rising investor appetite amid growing relief that the Omicron coronavirus variant may not cause serious illness and will have limited impact on global fuel demand.
Brent futures were up 94 cents, or 1.3%, to $76.09 a barrel as of 0500 GMT, after rising 1% on Friday.
West Texas Intermediate (WTI) rose $1.05, or 1.5%, to $72.72 a barrel, after gaining 1% in the previous session.
Both indicators were up nearly 8% last week, the first weekly gain in seven weeks, and have recouped more than half of losses since the Omicron headlines first appeared on November 25.
Market focus shifted to OPEC+’s next action. Iraq’s oil minister said on Sunday that he expects OPEC to maintain its current policy of gradual monthly increase in supply at 400,000 barrels per day at its next meeting. The world’s largest oil exporter, Saudi Arabia, is forecasting 2.9% GDP growth this year, followed by 7.4% growth in 2022, according to a budget document.
South African scientists said they saw no signs that the Omicron variant was causing more serious illness. UK health officials said COVID-19 vaccines have significantly improved protection against mild illness caused by the Omicron variant.
Investors are closely watching the Organization of the Petroleum Exporting Countries and their allies for their next meeting on Jan the 4th.
The market didn’t react much to the US Department of Energy’s announcement last Friday that it will sell 18 million barrels of crude from its strategic oil reserve (SPR) on Dec. 17, as part of a previous plan to lower gasoline prices.
