Energy prices stable in face of new Omicron concerns
By Jenal Mehta
Updated
On Monday, Britain confirmed the world’s first death due to Omicron. The market reaction was much more muted compared to the initial news of the discovery of Omicron, however. Brent crude oil traded at around $75.89, while US crude oil traded at around $71.27.
Prices are remaining stable due to the benefits of booster shots. Pfizer released a statement last week on studies showing that booster shots are effective against the new variant. The UK government has expanded its booster vaccination programme, with more of the public now eligible for the shot.
However, future lockdown measures remain uncertain as the UK government has also introduced stricter social measures in an effort to curb the Omicron spread.
This again is offset by the Organization of the Petroleum Exporting Countries (OPEC) stating in its monthly oil market report that global demand for oil will increase by 4.2 million barrels per day (mb/d) in 2022. This assessment is unchanged despite the discovery of the new variant. With regard to Omicron, OPEC anticipates the effect to be short-lived. It expects improved Covid-19 management and better vaccine uptake in the new year.
Six-month futures prices of Brent and US (WTI) crude oil as of 14 Dec 2021 – Credit: KoyfinPerformance
- Day range: $74.03-$75.19
- 52-week range: $49.13-$86.70
- 52-week price change: 47.74%
- 10-day Exponential Moving Average (EMA): $74.42
- 14-day Relative Strength Index (RSI): 43.69
- Day range: $70.59-$72.03
- 52-week range: $45.69-$83.83
- 52-week price change: 51.71%
- 10-day Exponential Moving Average (EMA): $71.09
- 14-day Relative Strength Index (RSI): 44.34
- Day range: $3.71-$3.84
- 52-week range: $2.26-$6.47
- 52-week price change: 42.77%
- 10-day Exponential Moving Average (EMA): $3.98
- 14-day Relative Strength Index (RSI): 35.07
Read more: Oil price analysis: Will tight supply support the market?
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