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

Energy prices stable in face of new Omicron concerns

By Jenal Mehta


Updated

Photo of oil rig at sea
OPEC expects demand for oil to increase next year – Photo: Shutterstock

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.

Oil - Brent

76.41 Price
-0.860% 1D Chg, %
Long position overnight fee -0.0148%
Short position overnight fee -0.0071%
Overnight fee time 22:00 (UTC)
Spread 0.032

Oil - Crude

71.65 Price
-0.860% 1D Chg, %
Long position overnight fee -0.0227%
Short position overnight fee 0.0007%
Overnight fee time 22:00 (UTC)
Spread 0.030

Gold

2,021.14 Price
+0.110% 1D Chg, %
Long position overnight fee -0.0197%
Short position overnight fee 0.0115%
Overnight fee time 22:00 (UTC)
Spread 0.30

Silver

24.10 Price
-0.120% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee 0.0122%
Overnight fee time 22:00 (UTC)
Spread 0.020
Six-month Brent and US crude oil price chart Six-month futures prices of Brent and US (WTI) crude oil as of 14 Dec 2021 – Credit: Koyfin

Performance

Brent crude oil

  • 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

US crude oil

  • 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

US natural gas

  • 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?

Markets in this article

Oil - Brent
Brent Oil
76.414 USD
-0.66 -0.860%
Oil - Crude
Crude Oil
71.651 USD
-0.622 -0.860%
Natural Gas
Natural Gas
2.6930 USD
0.008 +0.300%

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 Capital.com

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