Oil prices weakened Thursday following a report that OPEC and its allies have decided to release more oil into the market as previously agreed, despite the uncertainty caused by the new Covid variant. Uncertainty had gripped the market over whether the group of top producers would follow through with the existing pact to raise output given the uncertain situation regarding the pandemic and reluctance to oversupply the market. “The short-term outlook is clouded with uncertainty and until there is some clarity on the impact of omicron it is difficult to have a strong view on price direction in the near term,” said analysts at ING, in a note.
Oil prices fell slightly on Wednesday morning after the EIA confirmed a build in both gasoline and distillate inventories
(Reuters) -Crude oil futures settled lower on Wednesday, as an early rally fizzled and selling intensified on worries the Omicron variant of coronavirus could cut oil demand as global supply builds. Late in the session, oil prices dropped into negative territory after U.S. officials said the Omicron variant - believed more transmissible than previous strains of coronavirus - had been found in the country. Benchmark oil futures have been under pressure for weeks on factors ranging from the new coronavirus variant and the U.S. decision to release oil barrels from emergency reserves in tandem with other countries.