International Business: Oil prices ease as focus shifts to Opec+ move – Gulf Digital News

International Business: Oil prices ease as focus shifts to Opec+ move – Gulf Digital News

LONDON: Brent crude futures snapped a three-day rally yesterday in light trading before the Christmas holidays, but the benchmark ended the week higher, with the market focusing on next steps by Opec+ and the impact of the Omicron variant.

Brent crude futures settled 71 cents lower at $76.14 a barrel, rising by about 3 per cent on the week.

US markets were closed yesterday for the Christmas holiday.

Oil prices have recovered this week as fears over the impact of the highly infectious Omicron variant on the global economy receded, with early data suggesting it causes a milder level of illness.

“The omicron-is-mild rally could well continue into January now, but reality will bite in February I believe, as the end of the Fed taper moves into sight,” OANDA analyst Jeffrey Halley said.

The US Federal Reserve said last week it would end its pandemic-era bond purchases in March, paving the way for three interest rate increases that most Fed policymakers now believe will be needed next year.

The Organisation of the Petroleum Exporting Countries and allies including Russia, known as Opec+, will meet on January 4 to decide whether to go ahead with a 400,000 barrels per day (bpd) production increase in February.

Russia believes