ISLAMABAD
Crude oil prices edged up for the second day as less hospitalisations subdue fears over the Omicron variant of coronavirus. As of 1215 hours GMT on Tuesday, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.28 (+0.35 percent) to reach $79.26 a barrel. On the other hand, the US West Texas Intermediate (WTI) price reached $76.28 a barrel, up by $0.20 (+0.26 percent).
The price for Opec Basket was recorded at $77.97 a barrel with a gain of 5.04 percent, Arab Light was available at $77.54 a barrel with a gain of 0.92 percent and the price of Russian Sokol reached $77.87 a barrel with a gain of 1.01 percent.
The increase in oil prices also comes at a time when the Organisation of Petroleum Exporting Countries and its allies (Opec+) may boost supplies amid a tighter first-quarter surplus than initially expected. According to experts, oil prices rose as investors expect Opec+ producers meeting on output will stick with their planned increase for February based on indications Omicron would have only a mild impact on demand. Opec+ is expected to increase its output target by 400,000 barrels per day (bpd) for February.
Though Omicron cases continue to climb globally, the absence of widespread lockdown restrictions is likely to keep near-term oil demand concerns in check. Moreover, the people being hospitalised with Covid-19 are generally showing less severe symptoms than before, which suggests that though the surge of the fast-spreading Omicron variant is disrupting some sectors, there is at present no risk of it paralysing the global economies.
Meanwhile, oil exports from Venezuela doubled in December from a year earlier as the country raises production of revenue-generating hydrocarbons in defiance of the US sanctions. Shipments averaged 619,000 barrels a day in December. The Opec founding member increased exports for a third straight month with the support of ally Iran, which boosted the supply of a key ingredient that aids production, Bloomberg reported.
Output touched the crucial mark of 1 million barrels on a single day in December, state-owned oil company Petroleos de Venezuela SA said. Production averaged 625,000 barrels a day during the entire month of November. TLTP
