Oil prices rose 4% in a second straight session on Tuesday as risk-takers across markets abandoned all caution over the Omicron variant of the coronavirus. “We're seeing improvements in risk appetite again on Tuesday as fears around Omicron continue to ease following earlier reports of less severe symptoms,” said Craig Erlam, analyst at online trading platform OANDA. WTI, or the West Texas Intermediate benchmark for U.S. crude, settled up $2.56, or 3.7%, at $72.05.
Investor confidence in oil stocks has been shaken by the growing calls for an energy transition, but one oil major in particular seems to be answering those calls while continuing to grow
Despite some temporary hiccups, a supportive macro backdrop and robust fundamentals should help the likes of ConocoPhillips (COP), EOG Resources (EOG), Suncor Energy (SU) and Diamondback Energy (FANG) notch up further share gains.