By Peter Nurse
Investing.com – Oil prices rose on Monday, with speculation that the Omikron Cowid differential could have some effect on global energy demand, and Iran’s exports appear unlikely to increase anytime soon.
At 9 AM 15 ET (1415 GMT), futures traded up 2.8% at $ 68.08 a barrel and traded up 2.5%, to $ 71.65.
US gasoline RBOB futures increased by $ 2,9934 per gallon.
Crude markets were hit last month due to fears of an increase in the number of CVD cases, which have been exacerbated by Omicron’s new innovation.
Both metrics fell for the sixth week in a row last week, with both contracts falling 10% last month.
However, reports from South Africa, where the new variant was first discovered, showed that the Omicron cases showed only slight signs. In an interview with CNN over the weekend, Dr. Anthony Fouchi, chief medical adviser to President Joe Biden, said: “It does not seem to be serious.
The travel restrictions imposed by many countries to combat this alternative have been short-lived but have helped to increase market confidence that it has no effect on global demand.
Even after the Organization of Petroleum Exporting Countries (OPEC) and its partners decided to stick to the plan, news that the world’s largest exporter to the United States and Asia had increased was positive. At a meeting last week in January, 400,000 barrels a day.
“The move indicates that the Saudis are confident in their interest, and the market seems comfortable in this,” ING analysts said in a statement.
In the wake of last week’s talks between the world powers and the Gulf states of Iran over the 2015 Iran nuclear deal, the prospect of further Iran supply to the international market is likely to decrease.
Iran’s foreign ministry says it expects the next round of talks in Vienna to begin later this week, but that the two sides are still far from reaching an agreement.
According to Friday’s shows, estimates in the Brent contract have been cut to the lowest since November last year, while WTI lengths have been cut to the lowest since April last year.
“The long-term exit will open the door for estimates at these low levels to return to the market,” ING added.
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