Oil has sharply jumped in price amid a decrease in concerns related to Omicron

Last night, Brent oil quotes showed a sharp increase from the area of $75.50 to $78.60 per barrel. North American WTI crude oil rose from $72.60 to $76 per barrel. This price jump occurred against the background of a decrease in fears associated with the spread of a new strain of the omicron coronavirus – scientists suggest that it is not as dangerous as previously thought.

Doctors do not deny that the new type of Covid-19 spreads faster than any other variant of the coronavirus, but the disease is easy for most infected with this strain. Analysts note that the main consequences of omicron today are disruption of the production and supply chains of goods and services due to the isolation of workers.

In addition to the omicron-related news, there are signs of a slowdown in the growth of consumption of petroleum products in Asia. Moreover, analysts note that the market structure has become significantly more fragile, and this may lead to oversupply in the near future.

Investors are also monitoring the progress of negotiations on the resumption of the nuclear deal with Iran and are waiting for a new meeting of Russia and OPEC, which is scheduled for January 4. The members of the energy alliance must decide whether to maintain the planned increase in production by 400 thousand barrels per day in February.