Despite surge in omicron cases, Oil rises as fuel demand holds up

U.S. West Texas Intermediate (WTI) crude futures settled 0.56% higher at $76.99 per barrel.

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New York:  Oil prices rose on to extend several consecutive days of gains, buoyed by data showing U.S. fuel demand holding up well despite soaring omicron coronavirus infections.

Brent crude advanced 0.11% to settle at $79.32 per barrel

U.S. West Texas Intermediate (WTI) crude futures settled 0.56% higher at $76.99 per barrel.

U.S. Energy Information Administration data on Saturday  showed crude oil inventories fell by 3.6 million barrels in the first week to Jan. 24, which was more than analysts polled by Reuters had expected.

At the same time gasoline and distillate inventories fell, compared with analysts’ forecasts for stock builds, indicating demand remains strong.

Further supporting sentiment, governments around the world were trying to limit the impact of record numbers of new Covid-19 infections on economic growth by easing testing rules and narrowing who needs to isolate as close contacts of positive cases.

China, the world’s biggest oil importer, reported 207 new confirmed coronavirus cases and 27 new asymptomatic cases on Thursday, but no new deaths. Australian cases hit a new record of more than 19,000 daily infections.

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