Commodities Week Ahead: Oil, Gold Hang On A Thread From Omicron Threat – Investing.com

Commodities Week Ahead: Oil, Gold Hang On A Thread From Omicron Threat – Investing.com

Last week was oil’s worst since April 2020 and a new marker in the history books of crude trading. However, it is unclear where the market’s headed in the coming days.

 

That answer can only be told with accuracy when the extent of infections, hospitalizations and fatalities from the coronavirus' new Omicron wave are known. That may seem obvious. 

But for markets and decision makers pressing for information that flows by the nanoseconds, being ahead of every twist and turn in the new round of the pandemic will be as important as dealing with its aftereffects.

Anyone in doubt should take their cue from oil producing alliance OPEC+, which has delayed by 48 hours two technical meetings scheduled for Monday and Tuesday, ahead of the all-important of its ministers led by Saudi Arabia’s Abdulaziz bin Salman and Russia’s Alexander Novak. 

“This is in order to allow more time to assess the market in light of the new COVID-19 variant concerns,”  Eamonn Sheridan of ForexLive said.

At the time of writing, US crude’s benchmark was up 4.5% to $71.22 per barrel, recouping virtually half of the 11% plunge on Friday that marked the sharpest one day loss since