Oil prices on Tuesday were 5% as Iran’s nuclear program faced obstacles and delayed the return of Iran’s crude oil supply, while concerns about the impact of Omicron variants on global fuel demand eased. After recovering soon, it rose.
Brent crude oil futures rose 4.6% on Monday and then rose 60 cents (0.8%) at 0520 GMT to $ 73.68 a barrel. West Texas Intermediate crude rose 74 cents (1.1%) to $ 70.23 a barrel, based on a 4.9% rise in the previous session.
Last week, oil prices were hit by concerns that the vaccine could reduce the effectiveness of the vaccine against a new variant of the coronavirus, Omicron, as the government curbs its spread and weakens global growth and oil demand. There was growing concern that the regulation could be reintroduced.
However, South African health officials reported over the weekend that Omicron’s case showed only mild symptoms. Also, the top U.S. infectious disease official, Anthony Fauci, has told CNN “it does not look like there`s a great degree of severity” so far.
“This lowers the probability of the worst-case scenario that the oil markets have been pricing in over the past couple of weeks,” ANZ analysts said in a note.
In another sign of confidence in oil demand, the world’s top exporter Saudi Arabia raised monthly crude prices on Sunday. This comes after the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed to continue raising output by 400,000 barrels per day in January despite the release of U.S. strategic petroleum reserves.
Crude imports at the world’s top importer China also rebounded in November.
In addition, delays in the return of Iran’s oil supported prices. Indirect nuclear negotiations between the United States and Iran faced obstacles. Germany called on Iran on Monday to come up with a viable proposal in discussions on its nuclear program.
“Negotiations could be successful if resumed later this week, but markets consider longer delays in Iran’s oil exports,” said Vibeck Dahl, a commodities analyst at the Commonwealth Bank of Australia (OTC: CMWAY). You may have to do it.
“This is positive for oil prices and supports OPEC +’s plans to increase oil production by 2022.”
Meanwhile, Iraq is optimistic about rising demand and prices, and global oil and gas. Managers warn of under-investment and the need for fossil fuels, despite the pursuit of cleaner energy.
OANDA analyst Edward Moya said in a note, “A big oil stake, as strong support was provided in the mid-1960s and always reminded us that the oil market is likely to be in the red for the next few years. It seems that the sold-out is over. “