In early trading, the two crudes rose by about 50 cents.
“Oil prices are following the stock market’s decline due to Omicron’s concerns,” said Phil Flynn, chief analyst at Price Futures in Chicago. The market also gave up gains made early in the session after Libya said its production was increasing.
Concerns of the mutant Omicron leaked to oil market, which led to lower prices.
Oil prices rose five percent last week after protests in Kazakhstan disrupted train lines and hit production in the country’s largest oil field, Tangiz.
Also led maintenance pipeline in Libya To reduce production from 1.3 million barrels per day last year to 729,000 barrels per day.
And oil got support last week from rising global demand, which is not accompanied by increases in supply from… OPEC+ . group, which includes the Organization of the Petroleum Exporting Countries (OPEC), Russia and allies.
OPEC production in December rose by 70,000 barrels per day from the previous month, much less than the increase allowed under the OPEC + agreement of 253,000 barrels per day, which restored production that was cut in 2020 when demand collapsed under the Covid-19 closures.
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