Oil prices continue to rise as fears of omicron variant subside

Oil prices rose again on Tuesday morning as optimism that the omicron variant may not lead to massive global lockdowns helped extend Monday’s almost 5 percent rebound, easing concern over falling demand.

As of 10:00 a.m. EST on Tuesday, WTI Crude was up 2.85% at $71.55 and Brent Crude had gained 2.30% to $74.86.

Oil prices took a sharp fall last week as concerns about the omicron variant and the stalled Iran nuclear talks spooked the markets and led traders to worry that global growth and oil demand could be affected, Bloomberg reported.

Markets gained confidence this week, however, after a South African health official reported that individuals infected with the new variant had only shown mild symptoms.

Anthony Fauci, the Biden administration’s chief medical advisor, added to the chorus of good news when he told CNN that, "it does not look like there's a great degree of severity" so far.

Experts also pointed towards Saudi Arabia’s raising of monthly crude prices on Sunday as a sign that oil demand is not falling.

The Organization of Petroleum Exporting Countries (OPEC) also agreed to continue raising output by 400,000 barrels per day in January, despite the Biden administration’s decision to release 50 million barrels from the nation's strategic reserves.

Rystad Energy oil analyst Louise Dickson celebrated the continued rise in prices saying, “The oil market is experiencing some early Christmas cheer today, extending its recent run of gains thanks to rising optimism surrounding the Omicron variant and its potential impact on demand in the remainder of this year and the first half of 2022.”