(New York) Oil prices continued to rise for the fifth straight session on Tuesday as concern wears off over the effect of the Omicron variant on activity and demand for black gold.
A barrel of North Sea Brent for February delivery ended up 0.43% to US $ 78.94 from Monday’s close.
In New York, a barrel of West Texas Intermediate (WTI), for the same maturity, advanced 0.54% to US $ 75.98.
The two contracts, which climbed more than 2% on Monday, are at their highest for a month.
The price of Brent is once again approaching the US $ 80 mark, which it left on November 25, when the United States announced the sale of strategic reserves to lower prices.
Investors welcomed the decision by US health authorities to halve the isolation period for those infected from 10 to 5 days.
These measures are seen as positive for the business and for solving the labor shortages linked to the quarantines, which in particular caused thousands of flight cancellations at the airlines, due to a lack of flight personnel.
“This is very positive for oil and energy demand,” commented Robert Yawger, director of oil contracts at Mizuho Securities.
“Every day, we have the impression that we will know how to better manage the situation, investors regain confidence,” said Bill O’Grady, head of research at Confluence Investment Management.
Another factor favoring prices: the market is betting on a further reduction in the size of US crude stocks, the weekly report of which will be published on Wednesday by the US Energy Information Agency (EIA).
Analysts are forecasting U.S. commercial oil inventories to fall 2.7 million barrels, after already falling 4.7 million last week.
“We had two big drawdowns on stocks two weeks in a row, and last week’s number was the strongest in months. We could again have a solid reduction in reserves, and that is supporting the market, ”said Robert Yawger.
Bill O’Grady also points out that stocks are often reduced during the last weeks of the year for inventory reasons.
“We should have a report from the EIA favoring the rise in prices,” he said, adding, however, that the low volumes of trade on the market at the end of the year risked amplifying the movements on the market. lessons.
Finally, the onset of winter is favorable for energy prices, as north of a line between Albuquerque, New Mexico, and Pittsburgh, Pennsylvania, the United States begins to experience storms. snow and cold weather. “This mainly benefits natural gas, but also fuel oil,” noted the expert from Confluence Investment.
“We have only one goal in the viewfinder: it is the figure of $ 80 per barrel,” said the specialist from Mizuho.