Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Crude Oil Higher; Set for Fourth Consecutive Week of Gains

CommoditiesJan 14, 2022 22:20
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse   

Investing.com -- Oil prices edged higher Friday, on course for its fourth consecutive week of gains, as global demand seems to be holding up despite the surge in Omicron cases while supply remains tight. 

By 8:45 AM ET (1345 GMT), U.S. crude futures traded 0.2% higher at $82.24 a barrel and the Brent contract rose 0.3% to $84.75, rising to a two-month high.

U.S. Gasoline RBOB Futures were up 0.6% at $2.3979 a gallon.

The number of cases associated with the Omicron variant of the Covid-19 virus continues to mount globally, with China announcing late this week that it has spread to the cities of Dalian and Tianjin. 

China, the world’s largest importer of crude, posted its first annual decline in crude oil imports in two decades.

However, while it has proved to be fast-spreading, studies have also suggested that the variant is less dangerous. Thus restrictions have tended to be less severe than the market first feared at the end of last year when Omicron was discovered. 

The International Energy Agency said earlier this week that global oil demand has proven stronger than expected.

This comes against a backdrop of lingering worries about the ability of the global oil sector to produce the crude that a recovering world will need this year. After all, the Organization of the Petroleum Exporting Countries and their allies, including Russia, a group known as OPEC+, have struggled to fulfill their output increase promises.

Gains have been tempered Friday after Reuters reported that China plans to release oil reserves around the Lunar New Year holidays between Jan. 31 and Feb. 6 as part of a plan coordinated by the United States with other major consumers to reduce global prices.

The U.S. Energy Department announced on Thursday that it had sold 18 million barrels of strategic crude oil.

The Baker Hughes’ drilling rig count and the CFTC’s positioning data round off the week later in the session.

“The higher price environment should continue to see U.S. drilling activity pick up, although clearly, the rig count has grown at a more modest pace compared to previous up-cycles,” said analysts at ING, in a note.

“The mentality of U.S. producers has shifted over the last couple of years, from trying to maximize production growth to much more of a focus on capital discipline.”

 

Crude Oil Higher; Set for Fourth Consecutive Week of Gains
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email