Latest News

Oil prices post biggest weekly gain since August

Commodities1 hour ago (Dec 10, 2021 23:25)

2/2
© Reuters. FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson/File Photo/File Photo

2/2

By Jessica Resnick-Ault

NEW YORK (Reuters) -Oil prices rose slightly on Friday and posted their biggest weekly gain since late August, with market sentiment buoyed by easing concerns over the Omicron coronavirus variant’s impact on global economic growth and fuel demand.

The Brent and U.S. West Texas Intermediate (WTI) crude benchmarks each posted gains of about 8% this week, their first weekly gain in seven, even after a brief bout of profit-taking.

Brent futures settled up 73 cents, or 1%, at $75.15 a barrel, after falling 1.9% on Thursday.

WTI rose 73 cents, or 1%, to $71.67 after sliding 2% in a volatile session the previous day.

“Oil traders are coming out of their shell-shock and feeling more bullish as they recalibrate their demand expectations in the aftermath of the Omicron variation of the coronavirus,” said Phil Flynn, senior analyst price futures group in Chicago.

U.S. consumer prices rose further in November to produce the largest year-on-year rise since 1982, government data showed, adding to bullish sentiment on oil demand.

Earlier in the week the oil market had recovered about half the losses suffered since the Omicron outbreak on Nov. 25, with prices lifted by early studies suggesting that three doses of Pfizer (NYSE:PFE)’s COVID-19 vaccine offers protection against the Omicron variant.

“The oil market has thus rightly priced out the ‘worst-case scenario’ again, but it would be well-advised to leave a certain residual risk to oil demand in place,” said Commerzbank (DE:CBKG) analyst Carsten Fritsch.

Keeping a lid on prices are faltering domestic air traffic in China, owing to tighter travel restrictions, and weaker consumer confidence after repeated small outbreaks.

Ratings agency Fitch downgraded property developers China Evergrande Group and Kaisa Group, saying they had defaulted on offshore bonds.

That reinforced fears of a potential slowdown in China’s property sector, as well as the broader economy of the world’s biggest oil importer.

Oil prices post biggest weekly gain since August

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

You may also like

Leave a reply

Your email address will not be published.

More in Latest News