Oil prices regained ground lost on Friday, focus on European and American spreads, negotiate with Iran Reuters-zimo news


© Reuters. File photo: A sticker showing crude oil on the side of a storage tank in the Permian Basin in Menton, Lowen County, Texas, USA on November 22, 2019. REUTERS / Angus Mordant

Author: Obayashi Yuka

TOKYO (Reuters)-Oil prices rose on Monday, regaining some of their lost ground after falling by about $10 a barrel on Friday. Investors are looking for bargains, but remain cautious, focusing on the Omicron coronavirus variant and Iran’s nuclear agreement negotiations.

0014 GMT futures prices soared by US$3.05, or 4.2%, to US$75.77 per barrel, and fell by US$9.50 on Friday.

US West Texas Intermediate (WTI) crude oil rose 3.27 US dollars, or 4.8%, to 71.42 US dollars per barrel, after falling 10.24 US dollars in the previous trading day.

On Friday, oil prices fell by more than 10% along with other financial markets. This was the largest one-day drop since April 2020, as the new variant frightened investors and increased concerns about oversupply. Worries about the expansion of the month.

Hiroyuki said: “Due to the view that the oil market was oversold last week and OPEC+ may take action against Omicron and speculation that it may cut production, there has been a corrective buying order.” Nissan (OTC Securities) Chief Research Officer Kikukawa.

“All eyes will be on how Omicron affects the global economy and fuel demand, OPEC+’s actions, and Iran’s nuclear negotiations this week,” he said.

The Omicron variant of the coronavirus spread around the world on Sunday. Although more countries have implemented travel restrictions, new cases have been detected in the Netherlands, Denmark and Australia.

The World Health Organization (WHO) stated that it is unclear whether Omicron, originally found in southern Africa, is more easily spread or more dangerous than other variants.

According to reports, the Petroleum Exporting Countries and the Organization of Allied Powers (OPEC+) have postponed the technical meeting until later this week to allow more time to assess the impact of the Omicron variant on oil demand and prices. OPEC + sources and documents.

OPEC+ will meet on Thursday instead of Tuesday, and may announce a political decision at that time to decide whether to adjust its plan to increase its daily output to 400,000 barrels in January and beyond.

OPEC+ releases 400,000 barrels of oil every day, while reducing last year’s record production cut.

Some analysts said the group may stop increasing after oil-consuming countries release inventories and the possible impact of the new lockdown demand to contain new variants.

At the same time, negotiations to resume the 2015 Iran nuclear agreement will resume in Vienna on Monday. It is doubtful whether Iran’s progress in atomic energy is likely to achieve a breakthrough that will enable Tehran and the United States to fully abide by the agreement again.

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