U.S. oil extends rally above $70, aims for 2-week high

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US crude-oil futures rose for a second day on Tuesday, pushing the commodity to its highest price in nearly two weeks, as fears eased that the coronavirus Omicron variant could dampen demand over the winter, while China The week went on to ease monetary policy.

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West Texas Intermediate Crude for January Delivery CLF22,
+2.91%

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CL00,
+2.91%
After gaining 4.9% on Monday, the New York Mercantile Exchange gained $2.27, or $3.27, to $71.76 a barrel. If WTI, the US benchmark, settles at current levels, it would mark its highest price since November 24, a day before the emergence of the Omicron variant, which saw a sharp drop in stock and commodity prices.

February Brent crude BRNG22,
+2.44%

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BRN00,
+2.44%,
ICE Futures Europe, the global benchmark, was trading $1.83, or 2.5%, as high as $74.96 a barrel, and headed for a fourth straight gain after climbing 4.6% a day earlier, as well as the contract in November. Since headed for the highest end. 24, if the value is held by way of settlement.

Gains for crude have been aided by a confluence of factors, including stalled nuclear disarmament talks between Iran and other Western nations, reducing the chances of Iran returning to the crude oil market, while fears about the Omicron variant has also decreased.

In addition, China’s imports grew 31.7% year-on-year in November, while its exports grew by 22%. The data showed oil imports from the world’s biggest crude importer rose 14.3% to 10.17 million barrels per day in November from 8.9 million bpd a month earlier, though still 11.04 million bpd from the same period last year. is below.

The Organization of the Petroleum Exporting Countries and its allies, a grouping known as OPEC+, displayed some confidence in crude oil demand prospects last Thursday, calling for a rollover of an existing production policy and 400,000 per day in January. It is agreed to increase the monthly total production by barrels per day. , deciding not to adjourn the meeting to allow for further changes in the policy, if necessary.

Commodity strategists pointed to Saudi Arabia’s decision over the weekend to increase prices of Arab light oil for January delivery that it sells to Asia and the US as another bullish factor for oil gains.

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