By Adedapo Adesanya
Brent crude traded at $76.85 per barrel on Thursday after rising by $1.56 or 2.1 per cent on signs that the worst effects of the Omicron variant might be more containable than previously feared, even as countries imposed travel restrictions on surging infection levels.
Also, the United States West Texas Intermediate (WTI) crude appreciated by $1.03 or 1.4 per cent during the session to settle at $73.79 per barrel.
The oil market has wavered in recent days over how seriously to take the threat of another slump in fuel demand largely influenced by the latest discovered COVID-19 mutation.
The Omicron variant is more transmissible than previous coronavirus variants, but early data suggests it causes a milder level of illness.
Analysts believe that the demand destruction everybody thought was going to happen might not occur and this has increased investors’ risks.
However, some governments are imposing tighter travel restrictions to slow the spread of the variant, which could hit demand even if Omicron causes a lower level of hospitalization, particularly among the vaccinated.
Early evidence out of the United Kingdom and South Africa suggests Omicron doesn’t make as many people as seriously sick as Delta but based on how fast it has been spreading, health officials are still warning about overwhelmed hospitals and a breakdown of public services.
The Chinese city of Xian ordered its 13 million residents to stay home, while Scotland imposed gathering limits from December 26 for up to three weeks, and two Australian states reimposed mask mandates.
In other European countries – Germany, Ireland, and the Netherlands partial or full lockdowns or other social distancing measures have been reimposed in recent days.
Greece, Italy and Spain have reintroduced outdoor mask mandates. In Austria, people without proof of vaccination or covid-19 recovery can leave home only for essential reasons.
Europeans are being urged in some places required to keep holiday gatherings small to reduce spreading the virus.
The United States authorized separate antiviral COVID-19 pills manufactured by both Pfizer and Merck, and officials from the US Food and Drug Administration said the medications are both effective against the Omicron variant. read more
AstraZeneca said a three-dose course of its COVID-19 vaccine was effective against Omicron, citing data from an Oxford University lab study.
Meanwhile, four people were injured at a fire at Exxon Mobil’s Baytown refinery, one of the largest in the US. The fire is out, and the refinery is adjusting production at the facility, which has the ability to process up to 560,000 barrels per day, with minimal effect on prices.
Dipo Olowookere