Oil prices fell on Tuesday as investors worried about demand after renewed restrictions in Europe and Asia amid a rise in coronavirus cases.
Brent crude futures fell 34 cents, or 0.5%, to $74.05 a barrel, while West Texas Intermediate (WTI) crude futures fell 35 cents, or 0.5%, to $70.94 a barrel.
Energy traders do not intend to gamble on OPEC+ policy, all short-term risks from Omicron to Fed tightening are hurting the short-term outlook for oil prices.
Recently, governments around the world, including the UK and Norway, have been tightening restrictions to stop the spread of the Omicron variant.
The impact of the virus spreading across Europe is hitting a bigger blow than expected, and there will be family and family gatherings during the year-end holiday period, which will provide short-term mobility but carry the risk of the virus spreading.
Recently, governments around the world, including the UK and Norway, have been tightening restrictions to stop the spread of the Omicron variant.
In China, the major manufacturing province of Zhejiang is battling the wave of COVID-19, with tens of thousands of citizens in quarantine and virus-affected areas suspending their business activities, cutting flights and canceling events.
The Asian Development Bank on Tuesday narrowed its growth forecasts for this year to reflect the risks and uncertainty posed by the Omicron coronavirus variant, which could also hamper oil demand.
Still, the Organization of Petroleum Exporting Countries has raised its forecast for world oil demand for the first quarter of 2022 and has stuck to the timeline for a return to pre-pandemic oil use levels, saying the Omicron coronavirus variant will have a mild and brief impact.
Supply increases and Permian oil production, the largest US shale gas field, is expected to hit a record high in January, the US Energy Information Administration monthly forecast on Monday.