Will Omicron let crude oil futures rise or not, investors are still mulling this over, but the fact is that they have risen overnight to over $72. What remains is the certainty that Omicron continues to expand and is now found in several countries. The negotiations on a nuclear agreement between Iran and the West have stalled.
- WTI crude futures were up $2.56, or 3.7% at $72.05 a barrel.
- BRENT crude futures were up $2.36, or 3.2%, at $75.44 a barrel.
Both oil contracts rose gradually after yesterday. Saudi Arabia raises crude oil prices for January 2022 for customers in Asia and the US. Whether this shows confidence in demand or fear to sell its oil too cheap remains to be seen.
In addition, the oil market gained buying power as speculators reduced their concerns about the Omicron virus situation following a statement by Dr. Anthony Fauci, chief medical officer at the White House, who said, “There is currently no data to show that the Omicron virus causes serious illness.
In the meantime, negotiations on the nuclear agreement between Iran and the West are stagnating. This also supports the oil prices at the moment because Iranian oil does not appear on the market due to the sanctions.
Investors are watching the EIA’s weekly report on U.S. crude oil inventories today. Projections are that U.S. crude oil inventories will decline, gasoline inventories will increase by about 1.5 million barrels, and distillate inventories will increase by.
The Spot Market is Open
Wednesday, December 8, 2021