By Sonali Paul

MELBOURNE (Reuters) – Oil costs prolonged features on Thursday on confidence that the Omicron coronavirus variant wouldn’t dent international development, at the same time as some governments stepped up curbs to cease its fast unfold.

U.S. West Texas Intermediate (WTI) crude futures rose 28 cents, or 0.4%, to $72.64 a barrel at 0201 GMT, including to a 0.4% acquire within the earlier session.

futures rose 22 cents, or 0.3%, to $76.04 a barrel, including to a 0.5% acquire on Wednesday.

Markets have been buoyed by feedback from BioNTech and Pfizer (NYSE:) {that a} three-shot course of their COVID-19 vaccine might defend in opposition to an infection from the Omicron variant.

“Early indications of the Omicron variant … counsel that it could be much less extreme than initially feared given hospitalisation charges haven’t surged,” Commonwealth Financial institution commodities analyst Vivek Dhar stated in a notice.

“A 3rd vaccine dose can also be displaying promising indicators of safety in opposition to the brand new variant,” he stated.

Nevertheless market features have been muted as governments reimposed restrictions to restrict the unfold of Omicron, together with Britain ordering folks to make money working from home once more, Denmark closing eating places, bars and colleges and China halting group vacationer journeys from Guangdong.

“The dangers to demand haven’t solely diminished,” ANZ analysts stated in a notice.

The Omicron outbreak sparked a 16% droop in Brent costs from Nov. 25 to Dec. 1. Greater than half of the drop has been recouped this week, however analysts say an additional restoration could also be restricted till Omicron’s impression is clearer.

OANDA analyst Craig Erlam stated Brent is prone to face resistance across the decrease finish of the $76.50-77.50 vary, which was a key assist degree in late September and late November.