Oil forgoes some of its earnings in a context of conflicting demand expectations

Oil prices fell Thursday, giving up some of their big gains in the previous two sessions, in amid uncertainty about short-term question as infections of the mutated Omicron strain of Corona virus have increased in Worldwide.

US West Texas Intermediate benchmark crude contracts fell 20 cents, or 0.2%, to $ 82.44 a barrel at 05:03 GMT, after rising 1.7% in the previous session.

The international benchmark for Brent crude oil contracts also fell 19 cents, or 0.2%, to $ 84.48 a barrel, after rising 1.3% yesterday.

And data from the US Energy Information Administration yesterday showed that fuel demand was impacted by Omicron, as gasoline inventories rose eight million barrels in the week ending Jan.7, compared to analysts’ expectations for an increase of 2.4 million barrels.

“Gasoline demand has been weaker than expected and still below pre-pandemic levels, and if this continues, oil will not be in able to continue its rise, “said Edward Moya, analyst at Wanda, in a research note.

Moya added, however, that Omicron’s effect is expected to be short-lived.

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