Oil rally keeps up momentum as market’s Omicron worry eases

Oil rally keeps up momentum as market’s Omicron worry eases

New York: Oil posted a fourth straight weekly gain, the longest winning streak since October, on signs that the market is tightening as global consumption withstands the impact of the omicron virus variant. West Texas Intermediate futures in New York closed up 2.1 per cent on Friday, posting a 6.2 per cent weekly increase. Oil has made a strong start to the year, underscored by depleting U.S. inventories and product demand at multiyear highs. “The picture for oil is getting better because people are looking past the omicron variant and looking to reopening and a rebound in activity, much like we saw coming out of August,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. Crude has clawed back most of its losses late last year that were driven by omicron and the White House-led releases from national oil reserves. Although it has proved to be fast-spreading, the variant also appears to be milder, particularly in vaccinated people, lessening the impact on energy consumption. Demand in India is poised to weather the latest scare, according to Hindustan Petroleum Chairman Mukesh Kumar Surana. The International Energy Agency said earlier this week that global oil demand has turned out to