WASHINGTON (dpa-AFX) - Crude oil prices rose sharply on Tuesday and lifted the most active futures contracts to their highest settlement in nearly two weeks, amid rising optimism about the outlook for energy demand.
Reports saying the Omicron variant of the coronavirus is unlikely to impact global economic recovery has raised hopes about strong demand for oil.
West Texas Intermediate Crude oil futures for January ended higher by $2.56 or about 3.7% at $72.05 a barrel. WTI Crude oil futures had climbed nearly 5% on Monday.
Brent crude futures were up $2.30 or 3.15% at $75.38 a barrel a little while ago.
According to reports, experts are of the view that the new variant, with more than 30 mutations on its spike protein, may not be as dangerous as the Delta and Alpha and other variants of coronavirus.
A South African health official reportedly said over the weekend that Omicron cases in South Africa had shown only mild symptoms. Top U.S. infectious disease expert Anthony Fauci also commented that there did not appear to be 'a great degree of severity' with the variant so far.
Saudi Aramco's decision to raise prices of crude exported to Asia and the U.S. continued to contribue to oil futures' rise.
Oil prices also got a lift following the delay in the return of Iranian oil into the market as indirect nuclear talks between the U.S. and Iran have failed so far.
Traders also noted the data showing China's imports of crude oil rebounded in November from previous month's lows.
Traders now look ahead to weekly crude inventory reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API's report is due later today, while EIA is scheduled to release its inventory data Wednesday morning.
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