CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Brent climbs near $70 as Omicron worries ease, eyes on OPEC

By Fitri Wulandari

03:21, 2 December 2021

Pump jacks silhouette against a sunset sky
Markets soothed by WHO comment that vaccines could protect against severe cases – Photo: Shutterstock

Oil prices rose with Brent crude rates climbing to near $70 as the comments of the World Health Organisation (WHO) on Omicron soothed markets as well as expectations that the Organisation of Petroleum Exporting Countries (OPEC) will pause output increase in today’s meeting.

International benchmark Brent crude oil futures gained 0.42% to $69.14 per barrel on Thursday. US crude futures West Texas Intermediate rose 0.56% to $65.94/bbl. But Brent price is nearly 20% lower than a three-year high of $86/bbl in October.

The market’s concerns about the Omicron variant eased after the WHO said that vaccines will probably protect against severe cases, analysts at ANZ Research said in a note on Thursday.

OPEC output halt

“However, authorities continue to impose restrictions on travel in a bid to slow its spread across the globe. Growing expectations of a halt to supply increase from OPEC also boosted sentiment,” the analysts said.

The Saudi Arabia-led Organisation of Petroleum Exporting Countries and its allies or OPEC+ is meeting in Vienna yesterday and today to discuss whether to keep 400,000 barrels per day increase for January. Markets are expecting the alliance will halt output increase after the US and several key oil-consuming nations announced a concerted release of their strategic petroleum reserves (SPR) to tame high energy prices.

Oil - Crude

71.27 Price
-0.250% 1D Chg, %
Long position overnight fee -0.0213%
Short position overnight fee -0.0006%
Overnight fee time 22:00 (UTC)
Spread 0.040

Natural Gas

2.28 Price
-9.670% 1D Chg, %
Long position overnight fee 0.1063%
Short position overnight fee -0.1282%
Overnight fee time 22:00 (UTC)
Spread 0.0050

Oil - Brent

75.87 Price
-0.180% 1D Chg, %
Long position overnight fee -0.0174%
Short position overnight fee -0.0045%
Overnight fee time 22:00 (UTC)
Spread 0.032


22.76 Price
-0.980% 1D Chg, %
Long position overnight fee -0.0205%
Short position overnight fee 0.0123%
Overnight fee time 22:00 (UTC)
Spread 0.020

Lukman Leong, an analyst at Jakarta-based Deu Calion Futures said that the Covid-19 threat on oil demand has not yet diminished and any policy on supply may only give short-term relief.

What is your sentiment on Oil - Brent?

Vote to see Traders sentiment!

Covid-19 threat

“If it’s only a supply issue, such as the release of SPR, OPEC can handle it. But Covid-19 and lockdowns are beyond anyone’s control. It (Covid-19) can be long-term. It will put pressure on oil prices,” Lukman said.

“An output increase halt may support oil prices for the short-term, but it will not have much impact if demand eases because Omicron spark widespread lockdown,” he added.

OPEC in its monthly oil market report for November, released on Thursday, revised down its world’s oil demand growth in 2021 by 0.16 million barrels per day (bpd) compared with October’s assessment to stand at 5.7 million bpd. Global oil demand for this year is now estimated to reach 96.4 million bpd.

Read more: OPEC+ hinting at not releasing additional oil supplies

Markets in this article

Oil - Brent
Brent Oil
75.866 USD
-0.134 -0.180%

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading