Crude oil futures closed up $2.51 on Tuesday (Dec. 21) as traders engaged in speculative buying after the price fell sharply on Monday (Dec. 20).
- WTI crude futures were up $2.51, or 3.66%, at $71.12 a barrel.
- Brent crude futures were up $2.46, or 3.4%, at $73.98 a barrel.
The oil market has been infected by the downturn in stock markets on Monday. These were able to recover yesterday, which also allowed oil prices to rise. However, the signs and warnings have not changed. The Omicron variant continues to spread and let many offices and shops close again. The latest famous example is the CNN studio that had to be closed due to a COVID outbreak. Nothing has changed in the IEA’s warning that the world is moving into an oil surplus.
The Danish Ministry of Health announced today that the Omicron variant is now the predominant variant in Denmark.
The U.S. Centers for Disease Control and Prevention (CDC) also reported that the Omicron strain of COVID-19 has become the predominant strain in the United States. It accounts for 73% of the total number of COVID-19 cases.
Several European countries are considering tightening measures to contain the spread of Omicron. This will affect international travel as the virus has spread to more than 90 countries around the world.
Investors are looking at the crude oil inventories figures released today by the EIA. Crude oil inventories in the US are expected to fall for the fourth week in a row, while gasoline and refined gas inventories are expected to rise.
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Wednesday, December 22, 2021