Brent crude oil futures rose for three days in light holiday trading on Friday. However, the benchmark should still increase every week. The market is concerned about the next move of OPEC+ and the impact of Omicron variants.
At 07:41 GMT, Brent crude oil futures fell 41 cents, or 0.5%, to US$76.44 per barrel. The benchmark should rise by about 4% every week.
The concerns about the impact of Omicron’s highly contagious variant on the global economy faded. Due to this, oil prices rebounded this week, and early data indicated that it caused less disease.
The Organization of Petroleum Exporting Countries and allies, including Russia, may abide by its decision to increase by 400,000 barrels per day at the next meeting, as long as oil prices remain at $70 per barrel.
The Next OPEC+ Meeting Is Scheduled For January 4
However, in the face of increasing cases of infection, some investors remain cautious.
Omicron made progress on a global scale on Thursday. Health experts warned that although two drugmakers claim that their vaccines can protect against COVID-19 variants and there are signs that the risk of hospitalization is low, they are not compatible with the new COVID-19 variant. So, the struggle is far from over.
Wherever this variant spreads, coronavirus infections are increasing. It has triggered new restrictions in many countries, including Italy and Greece. The number of new cases has reached a record high.
More platforms in the United States have also increased the pressure on the oil market.
According to data from energy services company Baker Hughes, the US oil and gas platform rose to its highest level since April 2020 in the past week. The total number is now 586, which indicates that production will increase in the coming months.
Despite the tepid demand in Asia, Asian liquefied natural gas (LNG) prices have risen this week. Upside risks in the European natural gas market are still the main driver of price changes.
Thus, the world begins to recover from the coronavirus pandemic, and global oil demand resumes growth in 2021. However, despite efforts to reduce fossil fuel consumption to ease changes, total global consumption may set a new record in 2022.