|
Libyan oil output will be cut by 200,000 barrels per day for a
week due to pipeline maintenance. OPEC and its allies, known as
OPEC+, are expected to stick to a plan to raise output gradually
at a meeting on Tuesday.
Brent crude rose 95 cents, or 1.2%, to $78.73 a barrel as of
0923 GMT. U.S. West Texas Intermediate (WTI) crude added $1.03
or 1.4%, to $76.24.
"Infection rates are on the rise globally, restrictions are
being introduced in several countries, the air travel sector,
amongst others, is suffering, yet investors' optimism is
tangible," said Tamas Varga of oil broker PVM.
"It seems that the current strain produces less severe symptoms
than its predecessors, which might just help us to struggle
through the fourth wave of the pandemic."
Last year, Brent rose 50%, spurred by the global recovery from
the COVID-19 pandemic and OPEC+ supply cuts, even as infections
reached record highs worldwide.
Some see more gains in 20222.
"Crude and oil product prices should benefit from oil demand
moving above 2019 levels," said a report from UBS analysts
including Giovanni Staunovo. "We expect Brent to rise into a
$80–90 range in 2022."
Omicron has brought record case counts and dampened New Year
festivities around the world, with more than 4,000 flights
cancelled on Sunday.
Nonetheless, an OPEC+ report seen by Reuters on Sunday, ahead of
Tuesday's policy meeting, said Omicron's impact was expected to
be mild and short-lived.
(Additional reporting by Mohi Narayan and Naveen Thukral;
editing by Jason Neely)
[© 2022 Thomson Reuters. All rights
reserved.] Copyright 2022 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
