Oil prices rise almost 5% due to fewer fears about the Omicron variant

Oil prices rose almost 5% on Monday on the expectation that the Omicron variant of the coronavirus will have a less damaging economic impact if its symptoms turn out to be mostly mild, and when some member countries of the OPEC they gave signs of confidence in the market.

According to reports from South Africa, cases of Omicron in the country have only shown mild symptoms, and the United States’ top responsible for infectious diseases, Anthony Fauci, told the CNN that “there does not appear to be a high degree of severity” so far.

The White House said Monday that banning foreigners from eight southern African countries is something that President Joe Biden’s public health advisers reconsider on a daily basis.

The Brent oil it was up $ 3.20, or 4.58%, to $ 73.08 a barrel. American crude West Texas Intermediate (WTI) was up $ 3.23, or 4.87%, to $ 69.49 a barrel.

Last week, both benchmarks fell for the sixth consecutive week.

“All the news is bullish today,” said Phil Flynn, principal analyst at Price Futures Group.

The Brent, the world benchmark, is up 38% this year, supported by production cuts led by the producer group OPEC +, though it has fallen from a three-year high above $ 86 in October.

The group OPEC +, formed by the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, decided last week to continue increasing the monthly supply by 400,000 barrels per day (bpd) in January, despite falling prices due to Omicron fears.

The Petroleum was also favored because prospects for an increase in Iranian oil exports, after indirect talks between the United States and Iran to salvage the 2015 Iranian nuclear deal failed to advance last week.



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