Oil prices rallied on Thursday, extending several consecutive days of gains, bolstered by data showing US fuel demand doing well despite rising Omicron coronavirus infections.
Brent crude futures rose 24 cents, or 0.3%, to $79.47 a barrel at 0502 GMT, up for a fourth day. West Texas Intermediate (WTI) crude futures rose 26 cents, or 0.3%, to $76.82 a barrel, gaining seven straight sessions.
Oil prices continue to rise amid larger-than-expected declines in US crude and gasoline inventories and declining virus concerns.
Data Wednesday from the U.S. Energy Information Administration showed crude inventories fell 3.6 million barrels in the week to December 24, which was more than what analysts expected.
Gasoline and distillate stocks also fell compared to analysts’ forecasts, suggesting that demand remains strong despite record COVID-19 cases in the US.
Oil prices also received support from steps taken to ease testing rules and isolating close contacts of positive cases to limit the impact of record high COVID-19 cases on economic growth.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies will meet on January 4 to decide whether to continue increasing production in February.
Compliance with the production agreement is necessary for the stability of the oil market. Global oil prices recovered between 50% and 60% in 2021 as fuel demand returned to pre-pandemic levels, while deep output cuts by OPEC+ producers for most of the year eliminated market-heavy oversupply.
Industry sources have released the first batch of 2022 import quotas for China, the world’s largest importer of crude oil, with a total of 109.03 million tonnes, mostly to independent refineries, 11% below the comparable quota a year ago.
