Oil prices fell on Friday, in amid limited trading over the Christmas holidays after rising for three days, but crude oil is still heading towards posting weekly gains as the market focuses on the next steps of the OPEC + group and the impact of the mutant Omicron.
THE future Brent crude oil fell more than 1% to below $ 76 a barrel, following gains of 2.1% in the previous session. Crude is still on track to post a weekly increase of around 4%.
Markets in the US are closed on Friday due to the holiday season.
Oil prices rebounded this week as fears about the impact of the highly contagious mutant Omicron on the global economy eased as preliminary data indicated it was causing milder symptoms.
“Investors remain cautious in amid an increase in cases, ”said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
Coronavirus infections have increased dramatically wherever the mutator has moved, prompting many countries to impose new restrictions. On Thursday, United Airlines and Delta Air Lines announced the cancellation of dozens of flights on Christmas Eve with the presence of mutant infections among flight crew members and workers.
But Kikukawa said: “However, given the rise in natural gas prices in Europe and in Asia, oil will maintain a positive trend thanks to expectations of shifting some industries from high-priced gas to oil. “
An increase in the number of plants in the United States has also put pressure on the oil market. Baker Hughes Energy Services said the number of operational oil and gas platforms rose to their highest level since April 2020 in the past week. The total number of excavators reached 586, which heralds an increase in production in the coming months.
Read More About: Business News