Oil heads for uncharted territory in 2022 amid volatility and Opec’s output decision – The National

Oil heads for uncharted territory in 2022 amid volatility and Opec’s output decision – The National

Oil prices are headed for uncharted territory in 2022, driven by Omicron-related uncertainties and bouts of price volatility. Opec+ is entering a new phase of supply recalibrations and the US and key oil-consuming countries are looking to play a more active role in the markets.

Oil prices, which surged more than 60 per cent last month to trade above $80 per barrel, supported by gradual economic recovery in key markets, fell below $70 per barrel as the rapid spread of the more infectious Omicorn variant of the coronavirus raised question about the pace of economic momentum in the future.

But crude prices have clawed back some of the lost ground in recent weeks. Brent, the international benchmark under which two-thirds of the world's crude is traded, was up 0.3 per cent to $79.18 per barrel at 11.46am on Wednesday. West Texas Intermediate, which tracks US crude grades, was 0.2 per cent higher at $76.13 per barrel.