A 3D printed oil pump jack is seen in front of displayed Opec logo in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/Illustration
LONDON, Jan 11 (Reuters) – Oil rose to around $82 a barrel on Tuesday, supported by tight supply and hopes that rising coronavirus cases and the spread of the Omicron variant will not derail a global demand recovery.
OPEC supply additions are running below their allowed increase under a pact with allies due to a lack of capacity in some countries. Major economies have avoided a return to severe lockdowns, even as coronavirus cases soar.
Brent crude gained $1.14, or 1.4%, to $82.01 a barrel at 1134 GMT, after dropping 1% in the previous session. U.S. West Texas Intermediate (WTI) rose $1.16, or 1.5%, to $79.39, after falling 0.8% on Monday.
“Omicron has yet to wreak the havoc of the delta variant and may never do so, keeping the global recovery on track,” said Jeffrey Halley, analyst at brokerage OANDA.
Brent rose 50% in 2021 and has rallied further in 2022 as investors see demand rising while OPEC and its allies, known as OPEC+, slowly ease record output cuts made in 2020.
Outages in Libya have also supported prices and while production has risen, the National Oil Corp. said on Tuesday it was suspending exports from the Es Sider terminal.
“The higher oil production in the country has not yet translated directly into an increase in available oil supply,” said Carsten Fritsch of Commerzbank. “This may explain why oil prices have not responded as yet to the reopening of the Libyan oilfields.”
A weaker U.S. dollar also helped support oil as it makes oil cheaper for those holding other currencies and tends to reflect higher investor risk appetite.
In what would be a further indication of tight supply, the latest reports on U.S. inventories are expected to show crude stockpiles fell by about 2 million barrels.
The first of this week’s supply reports, from the American Petroleum Institute (API), is due at 2130 GMT.Additional reporting by Sonali Paul in Melbourne and Koustav Samanta in Singapore; editing by David Evans and Jason Neely
This article was originally published by Reuters.
Ghada Ashour, who grew up in Gaza, becomes fifth scholar selected for FIA’s flagship scholarship initiative Dubai, UAE, 8th December, 2025: The FIA’s United Against Online Abuse (UAOA) Campaign has welcomed Ghada Ashour, a 24-year-old student from Palestine, to its flagship scholarship programme, created to empower the next generation of researchers in the fight against online abuse in sport. Ghada grew up in Gaza where she has been studying remotely until gaining her place on the UAOA scholarship, which brought her to Dublin City University (DCU), Ireland. Becoming the fifth scholar to join the scholarship, she was selected based on her interests in social media, and her strong passion for advancing insights in this area for the benefit of everyone participating in sport. Launched in 2023, the programme offers talented students and young professionals from diverse backgrounds the opportunity to engage in cutting-edge research on the impact, prevalence, and prevention of online abuse in sport with a focus on developing practical solutions. Funded by the FIA Foundation, the UAOA scholars have been selected to undertake invaluable research at DCU based on their project proposals, dedication to achieving positive social change, and their unique perspectives approaching this issue. Ghada’s thesis, which will be printed in English and translated into Arabic, will focus specifically on the …
Dubai’s property market has moved beyond the “hot market” phase into a new era of…
Busy November drives deals to new high of 19,016 so far Dubai, UAE, 3rd December,…
Dubai-based Invictus Investment has quietly done something strategically loud. The agrifood and FMCG trader announced…
Abu Dhabi — For decades, commentators have blamed a perceived “knowledge deficit” for parts of…
Dubai has announced a massive 22-million-sq-ft Auto Market with 1,500 showrooms, a DP World–led project…