Crude oil prices near $84/barrel as Omicron impact expected to be short-lived
by SOURAV D | VIEW 1357
On Tuesday, both US WTI (West Texas Intermediate) and UK crude oil futures’ prices had jumped more than 3 per cent with both benchmarks climbing to their highest since mid-November, mostly driven by squeezed supplies alongside anticipations that fiscal fallouts of the rapidly rising Omicron cases would be short-lived. In point of fact, remarks from US Fed Chair Jerome Powell in a congressional hearing on Tuesday, had tuned up tone of Tuesday’s rally for crude oil futures, as Fed’s Powell was quoted saying that the impacts of Omicron would be short-lived and growth outlook remained highly positive, eventually leading to investors’ optimism over a demand-surge once the Omicron subsides. In the US, Omicron would likely to peak by late-January, while in the Western Europe, Omicron cases would likely to infect about 50 per cent population in less than a month with symptoms lasting between 5 to 7 days and requiring low hospital admission, suggested health officials.
Crude oil gains as US Fed’s Powell says Omicron impacts will be short-lived
Citing statistics, in the day’s commodity market wind-down, UK crude climbed 3.35 per cent to $83.59 per barrel, hitting the highest since early November, while US WTI crude oil contracts’ prices leapt 3.7 per cent to settle down at $81.11 a barrel, remarking the strongest since mid-November.
Meanwhile, addressing to a strong demand-surge along with a low output from Opec+ nations, a senior analyst at Price Future Group, Phil Flynn said, “Combination of facts - that demand is going to be stronger than anticipated and that OPEC's supply may not grow as fast as the demand - is why prices are climbing”.