WASHINGTON (dpa-AFX) - Oil prices rallied toward $82 a barrel on Tuesday amid easing Omicron worries and tight supply from the Organization of Petroleum Exporting Countries, Russia and allies, together called OPEC+.
Benchmark Brent crude futures jumped 1.5 percent to $82.07 per barrel, after having dropped 1 percent in the previous session. U.S. West Texas Intermediate (WTI) crude futures were up 1.7 percent at $79.55.
The surge in Covid-19 cases and resultant restrictions may have heightened anxieties about the nascent economic recovery, but reports suggest it might not derail economic recovery.
Oil demand recovery is seen holding course as many countries adapt to live with Covid-19. Major economies have avoided a return to severe lockdowns, even as coronavirus cases soar.
Also, supply additions from OPEC+ are not keeping up with demand growth due to a lack of capacity in some countries.
OPEC's output in December rose by 70,000 bpd from the previous month, versus the 253,000 bpd increase allowed under the OPEC+ supply deal which restored output slashed in 2020 when demand collapsed under Covid-19 lockdowns.
A weaker U.S. dollar also helped support oil prices today ahead of the latest weekly reports on U.S. inventories.
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