June 5, 2023

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Oil price approaches rise despite Omicron concerns |  Market talk

Oil price approaches rise despite Omicron concerns | Market talk

Oil prices rose on Tuesday, ending the session near $ 80 a barrel of Brent crude, supported by expectations of another fall in Omicron, supply crunch and U.S. crude stocks, despite the rapid spread of the new corona virus.

Brent crude was up 34 cents, or 0.4 percent, at $ 78.94 a barrel, while US West Texas Intermediate crude was up 41 cents, or 0.5 percent, at $ 75.98.

Both crude oil traded at a one-month high, supported by gains in US stocks.

“The stock market seems to be heading towards the end of the year at or near record highs, and it’s moving easily in the oil business, which is raising crude prices,” said Jim Ritterbush, president of Ritterbusch & Associates in Calana, Illinois.

“Combined production disruptions in Ecuador, Libya and Nigeria are also supported by expectations of another major fall in U.S. crude oil stocks,” said UBS inventory analyst Giovanni Stonovo.

All three oil-producing countries announced Force Mayure this month as part of oil production due to maintenance issues and the closure of oil fields.

Reuters’ preliminary poll on Monday showed that crude oil reserves in the United States could fall for the fifth week in a row, while petrol stocks are expected to stabilize last week.

Investors are waiting for the OPEC + board meeting on January 4 to decide whether the producers’ alliance plans to raise 400,000 barrels a day in February.

At its previous meeting, OPEC + stuck to its plans to increase production for January, despite the appearance of Omicron.