Oil rises as the market's fears over Omicron begin to ebb

Brent crude up to almost $70 a barrel as Opec+ continues to gradually boost output
Oil rises as the market's fears over Omicron begin to ebb

Crude oil prices rose today, giving up their earlier losses, as Opec+ stuck to its policy of incrementally boosting output, and as market considered whether the Omicron coronavirus variant may not be as bad as feared.

Brent crude rose by over $1 to just under $70 a barrel. The Organization of the Petroleum Exporting Countries and its allies, together known as Opec+, decided to release more oil into the market in January in line with previous months.

"They thought it might do more damage than good, to pause on production increases and that it might send a signal to the market that the demand destruction priced in was real," said Phil Flynn, senior analyst at Price Futures Group.

I think the Opec decision is sending a signal of confidence that they believe the price action recently has been overdone. 

Since August, the group has been adding an additional 400,000 barrels per day of output to global supply each month, gradually winding down record cuts agreed in 2020.

Global oil prices have lost more than $10 a barrel since last Thursday, when news of the Omicron variant first shook investors. Oil and gas prices are being closely watched amid global inflation pressures.  

• Reuters 

More in this section

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Lunchtime
News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up
Revoiced
Newsletter

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up