Oil continued to rise as new data emerged that the Omicron variant was not as bad as feared, with predictions that China will implement quantitative easing next year.
Economists have predicted that they will implement a monetary expansion policy from the beginning of 2022, after China announced that stabilizing the economy is among the most important goals for 2022.
With this statement from China, the world’s largest oil importer, it is expected that the optimistic expectations in the markets will strengthen. West Texas futures rose 1.6 percent after gaining 8.2 percent in its first week since last October, reversing half of Omikron’s losses. On Sunday, the Iraqi oil minister said that the Omicron variant had not impacted global oil demand as feared.
Oil has made a remarkable comeback after entering a bear market with several weeks of decline. While Asian countries have yet to implement their plans to release their strategic reserves, markets are trying to understand the potential impact of this move and Omicron-induced travel restrictions on supply and demand.
Citigroup lowered its forecast for Brent Petrol for next year by $2 per barrel last week due to Omicron concerns.