Crude oil futures held on to gains notched overnight in mid-morning trade in Asia Dec. 29 as risk sentiment in financial markets remained buoyant amid the festive season, though COVID-19 caseloads were still a concern.
Bullish sentiment in the broader financial markets continued to drive asset prices higher. The S&P 500 momentarily touched a fresh record high overnight, though it later pared gains to close lower on the day.
Oil prices were also supported by data from the American Petroleum Institute Dec. 28 showing US crude oil inventories fell by 3.1 million barrels in the week ended Dec 24, media reports indicated.
Nonetheless, COVID-19 cases continued to climb in Europe, with several countries including France, the UK and Italy all notching fresh record highs overnight. However British Prime Minister Boris Johnson this week ruled out any tightening of COVID-19 restrictions before 2022.
Amid the gloom, a South African study released Dec. 28 showed the omicron variant provided enhanced immunity against the delta variant, particularly for the vaccinated.
The omicron variant will likely displace delta as the dominant strain eventually, the study added. Scientists said it will allow less disruption to society should research showing less severe illness from omicron be confirmed. - Platts-