Oil prices head for weekly loss
Oil prices dipped on Friday, putting the market on track for a weekly loss, as surging cases of the Omicron coronavirus variant raised fears new curbs may hit fuel demand, while a weaker dollar supported commodity markets broadly.
Brent crude futures fell 74 cents, or 1%, to $74.28 a barrel while US West Texas Intermediate crude futures dropped 81 cents, or 1.1%, to $71.57 a barrel. Brent is headed for a 1.2% loss this week, while WTI is poised to finish the week down 0.1%, CNBC reported.
“Look at what’s happening with Omicron - that’s a negative which people are trying to digest. Are we going to be in line for some new restrictions? That’s what the market’s trying digest,” said Commonwealth Bank commodities analyst, Vivek Dhar.
In Denmark, South Africa and the United Kingdom, the number of new Omicron cases has been doubling every two days. Denmark’s Prime Minister Mette Frederiksen on Thursday warned the government may impose further curbs to limit the spread of Omicron.
In the United States, the rapid spread of the Omicron variant has led some companies to pause plans to get workers back into offices.
END