# Oil gains as investors see limited Omicron impact on demand Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-12-13 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Oil prices extend rally as Omicron fears ease Meta Description: Oil prices rise as Omicron fears ease, with Brent futures climbing to $76.09 and WTI to $72.72. Relief grows as Omicron seen causing low severity illness. URL: https://financedigest.com/oil-gains-as-investors-see-limited-omicron-impact-on-demandhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-12-13t033723z2lynxmpehbc016rtroptp4global-oil-reserves-1736836611479-compressed.jpg) By Yuka Obayashi TOKYO (Reuters) -Oil prices extended their rally on Monday as investor appetite improved amid growing relief the Omicron coronavirus variant may not cause severe illness and will likely have a limited impact on global fuel demand. Brent futures climbed 94 cents, or 1.3%, to $76.09 a barrel by 0500 GMT, after rising 1% on Friday. U.S. West Texas Intermediate (WTI) gained $1.05, or 1.5%, to $72.72 a barrel, [following a 1% increase](https://www.financedigest.com/multilocal-continues-hiring-spree-following-increasing-demand-for-its-services.html "multilocal continues hiring spree following increasing demand for its services") in the previous session. Both benchmarks posted gains of about 8% last week, their first [weekly gain](https://www.financedigest.com/londons-ftse-100-edges-higher-set-for-fourth-weekly-gain.html "London’s FTSE 100 edges higher, set for fourth weekly gain") in seven. They have recovered more than half the losses suffered since Omicron headlines first [hit Nov](https://www.financedigest.com/exclusive-foxconn-woes-could-hit-at-least-30-of-iphone-nov-shipments-from-china-plant-source.html "Exclusive: Foxconn woes could hit at least 30% of iPhone Nov shipments from China plant – source"). 25. There was a [growing sense of relief as the risk](https://www.financedigest.com/euro-zone-economy-faces-growing-risk-of-recession-survey-shows.html "Euro zone economy faces growing risk of recession, survey shows") of serious illness in the Omicron was seen as low,” said Tatsufumi Okoshi, senior economist at Nomura Securities. Market [focus has shifted](https://www.financedigest.com/stocks-fall-bond-yields-rise-as-focus-shifts-to-fed-rate-outlook.html "Stocks fall, bond yields rise as focus shifts to Fed, rate outlook") to the next action by OPEC+,” he said. South African scientists see no sign that the Omicron variant is causing more severe illness, they said on Friday, as [officials announced](https://www.financedigest.com/pega-pool-announces-the-official-launch-of-its-eco-friendly-bitcoin-mining-pool.html "PEGA Pool Announces the Official Launch of Its Eco-friendly Bitcoin Mining Pool") plans to roll out vaccine boosters with daily infections approaching an all-time high. [COVID-19 booster](https://www.financedigest.com/israels-covid-19-vaccine-boosters-show-signs-of-taming-delta.html "Israel’s COVID-19 vaccine boosters show signs of taming Delta") shots significantly restore protection against mild disease caused by the Omicron variant, UK health authorities said on Friday. [Investors are closely](https://www.financedigest.com/optable-closes-20-million-series-a-financing-broadens-investor-syndicate-in-new-round.html "Optable Closes Million Series A Financing, Broadens Investor Syndicate in New Round") watching the Organization of Petroleum Exporting Countries and its allies, a group known as OPEC+, at their next meeting on Jan. 4. They agreed earlier this month to stick to their existing policy of monthly [oil output](https://www.financedigest.com/uk-oil-gas-firms-to-leave-years-worth-of-output-in-ground-with-tax-hikes-report.html "UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report") increases. Iraq’s [oil minister said on Sunday he expected OPEC](https://www.financedigest.com/oil-prices-rebound-after-opec-upgrades-china-demand-outlook.html "Oil prices rebound after OPEC upgrades China demand outlook") at its next meeting to maintain its current policy of gradual monthly increases in supply by 400,000 bpd. The [market reacted little to an announcement](https://www.financedigest.com/market-harborough-building-society-announces-mhr-analytics-partnership.html "Market Harborough Building Society announces MHR Analytics partnership") last Friday by the U.S. Department of Energy that it will sell 18 million barrels of [crude oil](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") from its strategic petroleum reserve (SPR) on Dec. 17, as part of a previous [plan to try to reduce gasoline prices](https://www.financedigest.com/factbox-u-s-offers-new-details-on-plan-to-cap-russian-oil-prices.html "Factbox-U.S. offers new details on plan to cap Russian oil prices"). WTI will probably test its [recent high of $73.34 and then try to rise towards](https://www.financedigest.com/ftse-100-inches-towards-recent-highs-as-bp-shines.html "FTSE 100 inches towards recent highs as BP shines") $78, the level before the Omicron fears led to a sharp sell-off late last month,” said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd. Saudi Arabia, the world’s biggest [oil exporter](https://www.financedigest.com/u-s-oil-exports-to-europe-hit-record-in-march-on-steep-discounts.html "U.S. oil exports to Europe hit record in March on steep discounts"), on Sunday forecast 2.9% GDP growth this year followed by 7.4% growth in 2022, according to a budget document. The kingdom does not disclose the [oil price](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors") it assumes to calculate its budget, but Monica Malik, chief economist at Abu Dhabi Commercial Bank, estimated it was likely basing its budget for 2022 on an oil price assumption that could be as low as $50-$55 per barrel. (Reporting by Yuka Obayashi; Editing by Stephen Coates and Sam Holmes) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---