This is coming as Organisation of Petroleum Exporting Countries (OPEC) and its allies known as OPEC+ producers agreed to stick with their planned increase for February based on indications that Omicron would have only a mild impact on demand.
Oil prices, on Tuesday, rose by 2% as Brent crude, global oil benchmark, climbed to $80 per barrel.
This is coming as Organisation of Petroleum Exporting Countries (OPEC) and its allies known as OPEC+ producers agreed to stick with their planned increase for February based on indications that Omicron would have only a mild impact on demand.
Brent crude was up $1.50, or almost 2%, at $80.48 a barrel by 1450 GMT and U.S. West Texas Intermediate (WTI) crude rose by $1.48, or 2%, to $77.56, Reuters reports.
Rystad Energy’s head of oil markets, Bjornar Tonhaugen said, “the oil market is bullish today as a result of optimism sourced from today’s monthly OPEC+ meeting, which is helping oil prices trade higher.”
Some OPEC+ sources who spoke with the medium said the group agreed in their meeting on Tuesday to add 400,000 barrels per day (bpd) to output in February because it expects the Omicron variant to have short-lived impact on demand.
"Though Omicron cases continue to climb in key geographies, the absence of widespread lockdown restrictions will likely keep near-term demand concerns in check," RBC analysts said in a note.