SULAIMANI (ESTA) — Oil prices extended gains on Tuesday as concerns about the impact of the Omicron variant on global fuel demand eased while Iran nuclear talks hit roadblocks.
Brent crude futures rose 75 cents to $73.83 a barrel at 0546 GMT, after settling 4.6% higher on Monday.
U.S. West Texas Intermediate (WTI) crude gained 88 cents to $70.37 per barrel, building on a 4.9% gain in the previous session.
Oil prices were pummeled last week over concerns that vaccines might be less effective against the new coronavirus variant Omicron, sparking fears that governments may re-impose restrictions to curb its spread and hit global growth and oil demand.
A South African health official, however, said over the weekend that Omicron cases there had only shown mild symptoms, according to Reuters.
Anthony Fauci, the top U.S. infectious official, has told CNN that “it does not look like there’s a degree of severity” so far.
“This lowers the probability of the worst case scenario that the oil markets have been pricing on over the past couple of weeks,” Reuters quoted ANZ analysts as saying.
A delay in the return of Iranian also supported prices, after indirect U.S.-Iran talks hit deadlocks.
“While negotiations could still find success when they recommence later this week, markets may need to consider a more prolonged delay to Iranian oil exports,” Commonwealth Bank of Australia’s commodity analyst Vivek Dhar said, Reuters reported.
“That’s positive for oil prices and supports OPEC+ plans to boost oil production through 2022.”
