Oil surges again as traders shrug off Omicron impact

Oil surges again as traders shrug off Omicron impact

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Bloomberg

Oil headed for a fourth straight weekly gain, the longest streak since October, on signs that the market is tightening as global consumption withstands the impact of the Omicron virus variant.

Brent crude traded above $85 after rallying more than 4% this week. The global crude benchmark has made a strong start to the year, which has been underscored by lower US crude inventories.

Crude has now clawed back most of the losses late last year that were driven by omicron and the White House-led releases from national oil reserves. Although it has proved to be fast-spreading, the variant also appears to be milder, particularly in vaccinated people, lessening the impact on energy consumption. Major user India is poised to weather the latest scare. The International Energy Agency said earlier this week that global oil demand has turned out to be stronger than expected.

Oil prices are finding support from physical markets — where real barrels are bought and sold — as supplies change hands at healthy premiums. There’s also global strength in the diesel sector. With prices climbing higher, traders are watching whether the Organisation of Petroleum