Oil extends gains above $70 on signs omicron concerns overdone – ArabianBusiness.com

Oil extends gains above $70 on signs omicron concerns overdone – ArabianBusiness.com

Oil extended gains on optimism the omicron virus variant may not be as bad as anticipated, easing concern over the demand outlook.

Futures in New York advanced above $70 after closing almost 5 percent higher on Monday. Initial data shows that the surge in omicron cases hasn’t overwhelmed hospitals so far, but some nations have still implemented restrictions on travel that’s expected to crimp jet fuel demand. Meanwhile, companies lodged bids on Monday for crude set to be released from the US strategic reserve.

“It’s likely to be a slow grind higher if optimism is sustained, but marked by plenty of volatility,” said Vandana Hari, founder of Vanda Insights. “Sentiment will remain highly susceptible to even hints of omicron’s destructive power.”