Oil tops $83 due to tight supply

LONDON:

Oil rose to more than $83 a barrel on Tuesday, supported by tight supply and expectations that rising coronavirus cases and the spread of the Omicron variant will not derail a global demand recovery. A lack of capacity in some countries has meant that supply additions by the Organisation of the Petroleum Exporting Countries (OPEC) are running below the allowed increase under a pact with its allies. On the demand side, Federal Reserve Chair Jerome Powell on Tuesday said he expects the economic impact of the Omicron variant to be short-lived, adding that ensuing quarters could be very positive for the economy after Omicron subsides. Brent crude gained $2.6, or 3.22%, to $83.46 a barrel by 1630 GMT, it highest since early November, after having lost 1% in the previous session. US West Texas Intermediate (WTI) rose $2.75, or 3.5%, to $80.97, also its highest since mid-November. On Monday, it fell 0.8%. 

Published in The Express Tribune, January 12^th, 2022.

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