SULAIMANI (ESTA) — Oil prices edged lower on Monday as surging cases of the Omicron coronavirus variant in Europe and the United States stoked investor worries that new restrictions on business to combat its spread may hit fuel demand.
Brent crude futures fell $2.21 to $71.31 a barrel at 0552 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell $2.36 to $68.50 per barrel.
“Today’s Asia … weak sentiment in oil prices seems to go in line with a weakness seen in the S&P 500 and Nasdaq 11 e-mini futures,” Reuters quoted Kelvin Wong, market analyst at CMC Markets, as saying.
“[This is] due to fears of impending restrictions on economic activities to contain the current increasing spread of the COVID-19 Omicron variant worldwide which may increase the risk of demand slowdown,” Wong said.
The Netherlands went into lockdown on Sunday and the possibility of more coronavirus restrictions being imposed ahead of the Christmas and New Year holidays loomed over several European countries, according to Reuters.
U.S. health officials urged Americans on Sunday to get booster shots, wear masks and be careful if they travel over the winter holidays, as the Omicron variant raged across the world and was set to take over as the dominant strain in the United States.
