Omicron puts pressure on the oil market

On Wednesday, December 1, by the end of the day, Brent crude oil fell 1.67% to $ 68.94. Oil futures fell in the US session on news that the first case of a new strain of coronavirus was detected in the US.

OPEC + ministers concluded the first day of their meeting by postponing production talks until Thursday. The coalition needs to figure out whether to halt the increase in production or not, as a new strain of coronavirus casts doubt on the prospects for next year.

According to the latest data from the US Department of Energy, oil reserves in the country last week decreased by 909 thousand barrels, to 433.11 million barrels (the forecast was -1.45 million barrels).

On Thursday, December 2, oil traded in positive territory at trading in Asia. Brent crude rose 1.20% to $ 69.79. Market participants are awaiting the OPEC + decision. Taking into account that in November oil prices fell by 22%, after the decision we should expect the price to recover to 72.15.

The worst case scenarios are taken into account by the market. Only new lockdowns around the world can lower the price by another 20%.