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Oil Tacks on Another 4% as All Caution over Omicron Abandoned -Breaking

by Mike Robinson

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© Reuters.

By Barani Krishnan

Investing.com: Oil prices rose by 4% for the second consecutive session Tuesday, as investors across the markets gave up all concern over Omicron coronavirus.

“We’re seeing improvements in risk appetite again on Tuesday as fears around Omicron continue to ease following earlier reports of less severe symptoms,” said Craig Erlam, analyst at online trading platform OANDA.

WTI (the benchmark crude oil from the United States) settled at $72.05. It was up 2.56 or 3.7%. It rose 4.6% Monday. WTI fell to $62.48 for the fourth month last week, following a 7-year-high of $85.41 mid-October.

The global benchmark oil price, London-traded crude oil ended the session with a gain of $2.36 or 3.2% at $75.44. Brent was up 4.6% over the preceding session. It fell to $65.80 last week from an $86.70 high in October 2014.

Erlam stated that oil longs may run higher with the rally, before real profit-taking begins.

“We’re already seeing a bit in WTI around $71.50 but could see more on approach to $75, while in Brent $76.50-77.50 is key,” he said. “Ultimately it comes down to the headlines though and if symptoms prove to be less severe, meaning fewer hospitalizations and fatalities than feared, there’s no reason oil prices can head back towards the levels seen for much of November.”

Tuesday’s rally in oil came ahead of a weekly snapshot on U.S. crude, gasoline and distillate stockpiles due from the American Petroleum Institute. These API numbers are released every Tuesday at 4:30 PM ET (23:30 GMT) and serve as a prelude to the official weekly inventory data that is due from U.S. Energy Information Administration, EIA. 

Analysts tracked by Investing.com have forecast that U.S. fell by 1.7 million barrels for the week ended Dec. 3, adding to the previous week’s decline of 910,000.  

According to forecasts, inventories are expected to rise by 1.8million barrels on top of an increase of 4.03million in the previous week.

Stockpiles of , which include diesel and , are expected to have grown by 1.57 million barrels, after the previous week’s gain of 2.16 million.

 

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