# Oil prices keep climbing even as Omicron COVID-19 variant fans out
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-12-23
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Oil Prices Rise: Global growth optimism outweighs Omicron
Meta Description: Stay informed with the latest updates on oil prices as global growth outlook boosts market optimism despite COVID-19 curbs. Find out more here.
URL: https://financedigest.com/oil-prices-keep-climbing-even-as-omicron-covid-19-variant-fans-outhtml

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By Sonali Paul

MELBOURNE (Reuters) – Oil prices rose on Thursday for a third straight day, underpinned by a weaker dollar on optimism about global growth, even as governments from Australia to Europe step up curbs to slow the spread of the Omicron coronavirus variant.

U.S. West Texas Intermediate (WTI) crude [futures gained](https://www.financedigest.com/dollar-gains-as-wall-street-retreats-on-future-fed-hikes.html "Dollar gains as Wall Street retreats on future Fed hikes") 35 cents, or 0.5%, to $73.11 a barrel at 0244 GMT after jumping 2.3% in the previous session.

Brent crude futures climbed 40 cents, or 0.5%, to $75.69 a barrel, [extending a 1.8% gain](https://www.financedigest.com/oil-prices-extend-gains-with-falling-supplies-in-focus.html "Oil prices extend gains with falling supplies in focus") in the previous session.

The [big gains](https://www.financedigest.com/investors-warn-big-consumer-firms-over-price-hikes-as-competitors-gain.html "Investors warn big consumer firms over price hikes as competitors gain") on Wednesday were partly spurred by a larger-than-expected drawdown in U.S. crude stockpiles last week.

A weaker U.S. [dollar buoys oil](https://www.financedigest.com/oil-slumps-on-economic-data-stronger-u-s-dollar.html "Oil slumps on economic data, stronger U.S. dollar") markets as it makes commodities cheaper for those holding other currencies. The [dollar fell to near a one-week low](https://www.financedigest.com/dollar-falls-to-nine-month-low-as-powell-notes-progress-in-disinflation.html "Dollar falls to nine-month low as Powell notes progress in disinflation") after data on Wednesday showed U.S. [consumer confidence improving](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence") more than expected in December.

[Oil’s climb](https://www.financedigest.com/oil-climbs-on-growing-fears-of-conflict-over-ukraine.html "Oil climbs on growing fears of conflict over Ukraine") has come even as governments reimposed a range of restrictions to slow the spread of Omicron. The Chinese [city of Xian on Wednesday ordered its 13 million residents to stay home](https://www.financedigest.com/ebbsfleet-garden-city-kent-primed-new-homes.html "Ebbsfleet Garden City In Kent Primed For New Homes"), while Scotland imposed gathering limits from Dec. 26 for up to three weeks, and two Australian states reimposed mask mandates as cases surged.

The market has shrugged off the potential impact of mobility restrictions on fuel [demand because the Organization of the Petroleum Exporting](https://www.financedigest.com/turkeys-economy-grew-7-6-in-q2-driven-by-domestic-demand-exports.html "Turkey’s economy grew 7.6% in Q2 driven by domestic demand, exports") Countries (OPEC), Russia and allies, together called OPEC+, has left the door open to reviewing their plan to add 400,000 barrels per day of supply in January.

The Omicron variant could still lead to more restrictive measures across Europe and Asia, but [prices won’t break since OPEC+ can easily adjust their production levels,” said OANDA analyst Edward Moya in a note](https://www.financedigest.com/uk-house-prices-end-2022-on-a-weaker-note-after-pandemic-boom.html "UK house prices end 2022 on a weaker note after pandemic boom").

(Reporting by Sonali Paul; Editing by Kenneth Maxwell)


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