SULAIMANI (ESTA) — Oil prices fell on Thursday amid uncertainty over near-term demand as cases of the highly contagious Omicron variant of the coronavirus surge around the globe.
Brent crude futures slipped 22 cents to $84.45 a barrel at 0602 GMT, after rising 1.3% on Wednesday.
U.S. West Texas Intermediate (WTI) crude futures slipped 23 cents to $82.41 per barrel, after climbing 1.7% in the previous session.
Data from the U.S. Energy Information Administration showed fuel demands has taken a hit from Omicron, with gasoline stockpiles increasing by 8 million barrels in the week to January 7, according to Reuters.
“Gasoline demand was weaker-than-expected and still below pre-pandemic levels, and if this becomes a trend, oil won’t be able to continue to push higher,” Reuters quoted OANDA analyst Edward Moya as saying.
The market had earlier latched on to a bigger drawdown than expected in crude inventories and the fact that stockpiles are at their lowest since October 2018, pushing Brent and WTI to touch their highest in two months on Wednesday.
