Oil futures lose ground for a third straight day as worries remain over the spread of the omicron variant of the coronavirus that causes COVID-19.
Oil futures lost ground for a third straight day Wednesday as worries remain over the impact on energy demand from the spread of the omicron variant of the coronavirus that causes COVID-19, while traders also await an official read on U.S. crude inventories.
A report by the International Energy Agency on Tuesday cut the demand outlook for crude in the first quarter of 2022 as a result of the spread of the omicron variant, but said the effect would be short-lived. Nonetheless, the monthly update projected a market that would be substantially oversupplied in the first half of 2022.
Meanwhile, new modeling analyzed by the Centers for Disease Control and Prevention warns of an imminent surge in cases driven by the omicron variant, according to a report in The Washington Post. The report comes after the World Health Organization warned that omicron was spreading faster than any prior variant and could overwhelm health systems, even if cases remain milder.
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