Oil prices rose for the third consecutive day on Thursday, supported by a weak dollar and on optimism about global growth, even as governments from Australia to Europe increase restrictions to slow the spread of the Omicron coronavirus strain.
Brent crude futures rose 40 cents, or 0.5%, to $75.69 a barrel at 0244 GMT, after gaining 1.8% in the previous session.
West Texas Intermediate (WTI) crude futures rose 35 cents, or 0.5%, to $73.11 a barrel after gaining 2.3% in the previous session.
Wednesday’s big gains were supported in part by a larger-than-expected drop in US crude inventories last week.
The dollar slid to a one-week low after Wednesday’s data showed US consumer confidence rose more-than-expected in December. A weaker US dollar is stimulating oil markets as it makes commodities cheaper for those holding other currencies.
Oil is on the rise even as countries re-implement a series of restrictions to slow the spread of Omicron. The Chinese city of Xian instructed 13 million residents on Wednesday about curfew, while Scotland imposed gathering limits for up to three weeks from 26 December, and two Australian states reintroduced mask rules as cases escalated.
The Organization of the Petroleum Exporting Countries (OPEC) ignored the potential impact of market mobility restrictions on fuel demand, as Russia and its allies left the door open to reviewing plans to add 400,000 bpd in January.
The Omicron variant may still lead to more restrictive measures in Europe and Asia, but there is no clear case of breaking prices yet as OPEC+ can easily adjust production levels.
