Oil Prices Rise Above $70 as Omicron Concerns Slide

As the possibility of Iranian oil export continues to falter, and research suggesting that the Omicron variant of the Covid-19 Virus only poses a mild threat, oil prices rose above $71.

Brent Crude rose by 2.5%, to $71.65 by 09:20 GMT while U.S. West Texas Intermediate crude increased by 2.6%, to $67.95.

An Oando analyst, Jeffrey Halley stated “If Omicron is proven over the coming days (or weeks) to be less aggressive, even if it is more contagious, then we can say 100% last week’s lows were the bargain of the quarter,”

Equities in Europe as a well as bonds also experienced a major boost due to the easing of Omicron fears.

The restraint placed by the Organization of the Petroleum Exporting Countries and allies on oil supply has initiated a rise in prices of Brent by 38%. Concurrently strong recovering demand has also led to a three year high price of oil.

Last week, OPEC+ decided to continue increasing monthly supply by 400,000 barrels per day in January, even after a slide in prices driven by Omicron concerns.

On Sunday, Saudi Arabia disclosed It’s January’s official selling prices for all crude grades sold to Asia and the United States will increase by 80 cents from the previous month.