Oil prices were stable on Wednesday, prompting demand for the fuel amid COVID-19 concerns among market players after Singapore suspended quarantine-free travel and Australia halted its vaccination push due to a surge in Omicron variant cases. updated.
Brent crude futures rose 8 cents, or 0.1%, to $74.06 a barrel after gaining 3.4% in the previous session.
US West Texas Intermediate (WTI) crude futures were up 24 cents, or 0.3%, to $71.36 a barrel at 0610 GMT after jumping 3.7% on Tuesday.
Ajay Kedia, director of Kedia Commodities in Mumbai, said, “The bias on vaccine maker Moderna’s optimistic update is positive…
Moderna chief executive Stefan Bansel said on Tuesday that the vaccine maker did not expect to have any problems developing a booster shot to protect against the Omicron variant and could begin work in a few weeks.
In another bullish indicator, industry data showed US crude inventories fell more than expected last week.
US crude stocks fell 3.7 million barrels for the week ended December 17, according to market sources, data from the American Petroleum Institute showed eight analysts polled by Reuters expected a 2.8 million barrel drop, according to market sources. Had it.
Weekly data from the US Energy Information Administration is due later on Wednesday.
On the flipside, the Singapore government said it would suspend all new ticket sales for flights and buses in the city-state from December 23 to January 20, citing Omicron risks.
The curbs on mobility around the world have once again raised fears of a slump in fuel demand. Germany, Ireland, the Netherlands and South Korea are among countries that have reimposed partial or complete lockdowns or other social distancing measures in recent days.
On the supply side, investors are looking forward to a meeting of the OPEC+ producer group – consisting of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia – scheduled for January 4.
Consultancy JBC Energy said in a note that, along with several other production issues in Russia and the Atlantic basin, it is likely that Middle Eastern producers could push for continuing monthly quota increases.
This story has been published without modification in text from a wire agency feed.
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