Oil Prices Steady as Omicron Worries Linger

Oil Prices Steady as Omicron Worries Linger

A oil pump is seen at sunset outside Scheibenhard, near Strasbourg, France, October 6, 2017. REUTERS/Christian Hartmann/File Photo

Oil prices steadied on Tuesday after a sharp fall in the previous session as investors worried about the rapid spread of the Omicron coronavirus variant and the impact of renewed restrictions on fuel demand.

Brent crude was down 8 cents, or 0.1%, at $71.44 a barrel by 0903 GMT, while US West Texas Intermediate (WTI) crude rose 5 cents, or 0.1%, to $68.66 a barrel. Both contracts rose almost $1 earlier in the session.

"This is a pragmatic market that wants to be bullish but knows relief rallies, like the one this morning, will not last," said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.

"The upside is likely to be limited and more restrictions will be greeted with renewed selling," he added.

New Zealand delayed the planned reopening of its international border because of the sweeping spread of Omicron around the world on Tuesday, as several other countries reimposed social distancing measures.

Many nations are on high alert just days ahead of Christmas and New Year celebrations, with Omicron infections multiplying rapidly across Europe, the United States and Asia, including in Japan where a single