Brent futures fixed up $1.02, or 1.3%, at $80 a barrel, nearly back to the level they were at on Nov. 26 when reports of the new variant first emerged, flashing a more than 10% reduction in prices on that day.
U.S. West Texas Intermediate (WTI) crude climbed 91 cents, or 1.2%, to $76.99.
OPEC+ decided to stick to its deliberate increase of 400,000 barrels per day (BPD) in oil production in February.
Its decision echoes easing worries over a significant surplus in the first quarter and a desire to provide consistent guidance to the market.
Crude stockpiles in the United States, the world’s leading consumer, should have fallen for a sixth consecutive week. Analysts surveyed by Reuters calculated ahead of weekly industry data expected at 4:30 p.m. EST (2130 GMT), pursued by the government’s report on Wednesday. [EIA/S] [API/S]
The White House greeted the decision by OPEC+ to resume production gains which will help boost economic recovery, a spokesperson stated.
Coronavirus Affecting European Markets
In Britain, people hospitalized with coronavirus were generally showing less intense symptoms than previously.
In France, the finance minister expressed that the wave of the fast-spreading Omicron variant disrupted some sectors. Still, there was no chance of it “paralyzing” the economy and stuck to a 4% GDP growth forecast in 2022.
Global manufacturing activity stayed strong in December. It revealed that Omicron’s influence on output had been suppressed.
Nevertheless, analysts warned OPEC+ might have to switch tack if the tension between the West and Russia over Ukraine opens up and hits fuel supplies or if Iran’s nuclear discussions with significant powers improve, which would lead to an ending to oil sanctions on Tehran.