Friday, December 9

Investors close ranks on Brent oil

Oil in the United States fell Monday after airlines suspended thousands of flights over the Christmas holidays. The Brent did receive support from investors because of the hopes that the omicron variant will have a limited impact on global demand.

Context // US airlines canceled more than 1,300 flights on Sunday as Covid-19 infections reduced the number of available crew members, while several cruise ships had to cancel stopovers.

  • US West Texas Intermediate (WTI) oil was down 89 cents, or 1.2 percent, at $ 72.90 a barrel. The US market was closed on Friday due to the Christmas holidays. Global benchmark Brent was up 12 cents, or 0.2 percent, at $ 76.26 on Monday.
  • “Fewer trips equate to less economic activity in the United States, which equates to lower WTI prices,” said Jeffrey Halley, an analyst at brokerage OANDA. He added that the divergence between Brent and WTI could reflect that the recovery is ongoing.