Capitals – Oil prices fell on Thursday, giving up some of their big gains in the previous two sessions, amid uncertainty regarding demand in the near term as infections of the mutated Omicron strain of the Corona virus rose around the world.
US benchmark West Texas Intermediate crude contracts fell 20 cents, or 0.2 percent, to $82.44 a barrel at 0503 GMT, following rising 1.7 percent in the previous session.
Brent crude, the global benchmark, fell 19 cents, or 0.2 percent, to $84.48 a barrel, following rising 1.3 percent yesterday.
And data from the US Energy Information Administration yesterday showed that fuel demand was affected by Omicron, as gasoline stocks rose by eight million barrels in the week ending January 7, compared to analysts’ expectations for an increase of 2.4 million barrels.
“Gasoline demand was weaker than expected and still below pre-pandemic levels, and if this continues, oil will not be able to continue its rise,” Edward Moya, an analyst with Wanda, said in a research note.
Moya added, however, that Omicron’s effect is expected to be short-lived.
(Archyde.com)