Thursday, January 27, 2022

Oil tops $83, as Omicron impact expected to be short lived
Photo Credit To Reuters

Oil tops $83, as Omicron impact expected to be short lived

Oil rose to more than $83 a barrel on Tuesday, supported by tight supply and expectations that rising coronavirus cases and the spread of the Omicron variant will not derail a global demand recovery, Reuters reported.

A lack of capacity in some countries has meant that supply additions by the Organization of the Petroleum Exporting Countries (OPEC) are running below the allowed increase under a pact with its allies.

On the demand side, Federal Reserve Chair Jerome Powell on Tuesday said he expects the economic impact of the Omicron variant to be short lived, adding that ensuing quarters could be very positive for the economy after Omicron subsides.

Brent crude gained $2.6, or 3.22%, to $83.46 a barrel by 11:30 a.m. ET (1630 GMT), it highest since early November, after having lost 1% in the previous session.

U.S. West Texas Intermediate (WTI) rose $2.75, or 3.5%, to $80.97, also its highest since mid-November. On Monday, it fell 0.8%, according to Reuters.