THE Petroleum operates in fall on Monday after airlines from the USA canceled thousands of flights over the Christmas holiday amid cases of Covid-19, although losses were limited by the hope that the variant Omicron will have a limited impact on global demand.
More than 1,300 flights were canceled by US airlines on Sunday, as Covid-19 reduced the number of available crews, while several cruise ships had to cancel stops.
US crude oil (WTI) retreated $1.91, or 1.2%, to $72.88 a barrel at 10:22 (Brasilia time).
The US market was closed on Friday due to the holiday. The global benchmark Brent rose $0.17, or 0.2%, to $76.31 a barrel.
“Less travel equals less economic activity in the US, which equals less WTI,” said Jeffrey Halley, an analyst at brokerage OANDA, who added that the divergence between Brent and WTI could mean the global recovery remains on track.
“The disruption of goods and services by isolating workers, notably air travel, appears to be the main consequence so far,” he said of the rise in Ômicron cases. “This will likely only cause nervousness in the short term, with the global recovery story for 2022 still on track.”
THE Brent increased by more than 45% this year, supported by the recovery in demand and supply cuts by the Organization of Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+.
Also on investors’ radar is the next OPEC+ meeting on January 4, at which the producer alliance will decide whether to go ahead with a planned production increase of 400,000 barrels per day (bpd) in February.
OPEC+ stuck to its plans at its last meeting to ramp up production in January, despite the Ômicron.
Source From: Moneytimes
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