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.
Investors are closely 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 increases.Iraq's oil minister said on Sunday he expected OPEC 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 last Friday by the U.S. Department of Energy that it will sell 18 million barrels of crude oil from its strategic petroleum reserve on Dec. 17, as part of a previous plan to try to reduce gasoline prices."WTI will probably test its recent high of $73.34 and then try to rise towards $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, 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 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 HolmesSubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Oil rises on optimism Omicron impact will be limited on fuel demandOil prices rose on Monday, extending gains from last Friday, helped by growing optimism that the Omicron coronavirus variant's impact will be limited on global economic growth and fuel demand.
Read more »
Gastropod: The Most Interesting Oil in the World on Apple PodcastsSome say palm oil is a magical product, which is why we have colonized continents and destroyed rainforests for it. Hear more about why we continue to use it in pretty much everything today — despite its disastrous environmental impact — on gastropodcast
Read more »
Tre Latte Olive Oil CakeThis is a tres leches meets olive oil cake, lightened up with a chiffon base to help soak in all of the milk.
Read more »
Leaking California oil pipe's safeguards not fully working | AP NewsLOS ANGELES (AP) — The ruptured offshore pipeline that spilled tens of thousands of gallons of crude oil off the Southern California coast this fall did not have a fully functioning leak detection system at the time, according to a report obtained by The Associated Press.
Read more »
Oil rises on optimism Omicron impact will be limited on fuel demandOil prices rose on Monday, extending gains from last Friday, helped by growing optimism that the Omicron coronavirus variant's impact will be limited on global economic growth and fuel demand.
Read more »