# Oil prices stay firm on fuel demand despite COVID-19 surge
Published: 2021-12-30
Category: Business
Category URL: https://blockchaintribune.com/category/business/
Meta Title: Oil prices rise on data showing strong fuel demand despite Omicron infections
Meta Description: Read about how oil prices continue to climb as U.S. fuel demand remains robust amid Omicron coronavirus infections, supported by falling inventories and governm
URL: https://blockchaintribune.com/oil-prices-stay-firm-on-fuel-demand-despite-covid-19-surge/

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By Florence Tan and Sonali Paul

SINGAPORE (Reuters) -Oil prices rose on Thursday 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 futures [rose](https://blockchaintribune.com/bitcoin-rises-2-1-to-reclaim-50000/) 24 cents, or 0.3%, to $79.47 a barrel at 0502 GMT, up for a fourth day. U.S. West Texas Intermediate (WTI) crude futures rose 26 cents, or 0.3%, to $76.82 a barrel for a seventh session of gains.

“Oil prices edged higher overnight thanks to larger-than-expected falls in U.S. crude and gasoline inventories and receding virus nerves,” Jeffrey Halley, senior market analyst at brokerage OANDA said in a note.

U.S. Energy Information Administration data on Wednesday showed [crude](https://blockchaintribune.com/shell-to-shut-in-portions-of-louisiana-zydeco-oil-pipeline-for-maintenance/) oil inventories fell by 3.6 million barrels in the week to Dec. 24, which was more than what analysts polled by Reuters had expected. \[EIA/S\]

Gasoline and distillate inventories also fell, versus analysts’ forecasts for builds, indicating demand remains strong despite record COVID-19 cases in the United States.

Oil prices also drew support from steps taken by governments to limit the impact of record high COVID-19 cases on economic growth, such as easing testing rules and narrowing who needs to isolate as close contacts of positive cases.

The Organization of the Petroleum Exporting Countries [(OPEC)](https://blockchaintribune.com/what-is-opec-and-how-does-it-affect-oil-prices/) and their allies, a group known as OPEC+, will meet on Jan. 4 to decide whether they will continue increasing output in February.

Saudi Arabia’s King Salman said on Wednesday the OPEC+ production agreement was “essential” to oil market stability and stressed the need for producers to comply with the pact.

Global oil prices have rebounded by 50% to 60% in 2021 as fuel demand roared back to near pre-pandemic levels while deep production cuts by OPEC+ producers for most of the year erased a supply glut that has been weighing on the market.

China, the world’s top [crude](https://blockchaintribune.com/shell-to-shut-in-portions-of-louisiana-zydeco-oil-pipeline-for-maintenance/) importer, has issued the first batch of 2022 import quotas to mostly independent refiners, totalling 109.03 million tonnes, 11% below the comparable year-earlier quota, industry sources said.

(Reporting by Sonali Paul and Florence Tan; editing by Richard Pullin and Himani Sarkar)


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