Crude prices have partially recovered as investors jumped into the market to take advantage of last weekend’s plunge, as well as as some predicted OPEC might pause production increases in response. the spread of the Omicron variant.
In today’s trading session (November 29), world crude oil price recovered somewhat after a sharp drop at the end of last week. At 3pm (Vietnam time), Brent oil futures price increased 4.4% to $76/barrel, while WTI oil price increased 4.9% to $71.5/barrel.
Reuters explained, the fact that investors jostled into the market to make a profit after the oil price plummeted as well as the fact that some sources predicted that OPEC would pause increasing production to combat the Omicron mutation were the driving force behind the price increase. oil increased.
However, cautious sentiment still prevails in the market because scientists have not revealed much information about the new super mutant.
Last Friday (November 26), crude oil prices jumped more than 12% after the World Health Organization (WHO) announced some preliminary information about Omicron, the first discovered strain. in South Africa.
The new strain has now spread to all continents in the world, many countries such as the Netherlands, Denmark and Australia continuously record new cases and a number of other countries have issued orders to restrict the reception of foreign visitors.
In a newly released statement, WHO warned: “Omicron has an unprecedented number of mutations in the spike protein. Some of these mutations are worrisome because of their potential to influence the course of the pandemic. The overall global risk associated with this new variant is assessed to be very high.”
Oil storage tanks on land. (Photo: Reuters).
Experts fear that Omicron could impact oil demand and hinder the recovery of the global economy. Not to mention, some even warned that the oversupply could become more serious in the first quarter of next year.
Right from the beginning of the new week, OPEC+ decided to move technical sessions to the middle of the week to have more time to assess the impact of the Omicron mutation on crude oil demand and price.
“We see some correction in the energy market as last weekend’s plunge was so monstrous,” said Tatsufumi Okoshi, senior economist at Nomura Securities.
“If crude oil prices fall further, the OPEC+ alliance may pause its plan to increase production to support oil prices,” Okoshi added.
All eyes are on the potential damage Omicron does to the global economy, fuel demand and OPEC+ policy decisions, said Hiroyuki Kikukawa, director of research at Nissan Securities. in this week.
In addition, Kikukawa also noted the negotiations surrounding the 2015 Iran nuclear deal. Since November 29, relevant parties have gathered in the Austrian capital Vienna to renegotiate this agreement.
If negotiations go to success, millions of barrels of Iranian oil could be pumped to the market, adding to OPEC+’s concerns in the context of the US and major customers such as Japan, South Korea, the UK, India and the US. China released crude oil stockpiles to reduce gasoline prices; as well as in the midst of the Omicron mutation spreading across the globe.
T&G International Joint Stock Company
Address: 352 Hue Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi
Hotline: 0345786803
Email: hrm@tginterjsc.com
Website: http://tginternationaljsc.com
