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

Oil prices continue rally as Omicron concerns ease

By Fitri Wulandari

04:57, 13 December 2021

Illustration of oil pumps, drilling derricks at sunset
Illustration of oil pumps, drilling derricks at sunset – Photo: Shutterstock

Oil prices extended gains on Monday in Asia as concerns about the impact of Covid-19's Omicron variant on oil demand eased following a slew of promising travel data.

International benchmark Brent crude oil futures gained 1.16% to $76.02 per barrel (bbl). West Texas Intermediate advanced 1.31% to $72.61/bbl.

“Omicron appears to be less severe. It’s different to the Delta variant which has proven to have claimed lives,” said Wahyu Laksono, the founder of Jakarta-based foreign exchange trading community platform, told

The World Health Organization (WHO) said last week, as reported by The Guardian, that no deaths due to the Omicron variant have yet been reported.

Improving traffic

“In addition, (global) oil production is at risk because of underinvestment. Furthermore, once economies reopen, energy prices will become more expensive,” Wahyu added.

Data also showed travel was on a rebound. Flightradar24 data indicated US flights are back to their 2019 level and US highways are also at their most congested since the pandemic began, according to ANZ Research on its note on Monday.

Transportation analytics INRIX Inc on 2021 Global Traffic Scorecard showed last week the average American driver lost 36 hours due to congestion. It is a 10-hour increase from 2020, but 63 hours below pre-pandemic levels. London topped the list of cities in the world most impacted by traffic congestion with drivers losing 148 hours in 2020, INRIX data show.


2,004.85 Price
-1.180% 1D Chg, %
Long position overnight fee -0.0198%
Short position overnight fee 0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.50

Oil - Crude

71.41 Price
+2.320% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee -0.0015%
Overnight fee time 22:00 (UTC)
Spread 0.030


44,097.60 Price
-1.270% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


0.68 Price
+0.410% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

Rising cases cap price gains

“However, the rising case numbers are stopping confidence getting too high,” according to ANZ Raesearch.

Reuters reported that the US crossed 50 million coronavirus cases on Sunday amid the ongoing threat of the Delta variant and the spread of the newly discovered Omicron variant.

An additional 1,239 Omicron cases have been found in the UK, Sky News reported on Sunday, bringing the total number of confirmed cases of the variant to 1,898.

Eyes on Iran talks

ANZ Research added that markets are also keeping an eye on ongoing talks between Iran and the world’s powers to resume the 2015 nuclear deal. A successful negotiation could see sanctions against Iran lifted, allowing the country to resume its oil exports.

“Under a scenario where US sanctions are lifted, Iran oil output could jump by over 1 million barrels per day,” according to ANZ Research.

But Reuters reported on Sunday that Iran said European countries had failed to offer constructive proposals to help to revive a 2015 nuclear deal, after Britain said there was still time for Tehran to save it but that this was the last chance.

Read more: US crude oil sees bounce Friday morning

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