Oil Prices Fell as Countries Introduced Travel Restrictions

Oil Prices Fell as Countries Introduced Travel Restrictions

Oil prices declined on Thursday as countries reintroduced travel restrictions to limit the spread of the omicron variant of Covid-19, though the downside remained capped over positive developments around Covid-19.

U.S. West Texas Intermediate (WTI) crude futures dropped 12 cents or 0.1% to $72.62 a barrel at 08:10 GMT. WTI crude futures gained 2.3% in the previous session.

Brent crude futures declined 18 cents or 0.1% to $75.11 a barrel. On Wednesday, Brent crude futures added 1.18%.

The big gains on Wednesday were partly triggered by a larger-than-expected decline in U.S. crude stockpiles last week.

Oil prices and important factors

Scientists are working hard to minimize the impact of Covid-19 on the healthcare system. Recently, the U.S. authorized Pfizer Inc’s antiviral Covid-19 pill for people ages 12 and older. the first oral and at-home treatment. Besides, the Covid-19 pill is a new tool against the fast-spreading Omicron variant.

The biggest oil importer in the world is trying to eradicate the Covid-19. Authorities in the Chinese city of Xian ordered people to stay at home. China is not willing to abandon its zero-Covid policy in spite of all challenges.

Scotland also decided to take strict measures against the Covid-19. It imposed limits on gatherings from December 26 for up to three weeks. Two Australian states reintroduced mask mandates as cases surged.

Nonetheless, fears regarding the potential impact of mobility restrictions on fuel demand declined thanks to OPEC+. Major oil producers are closely monitoring the situation and they are trying to analyze various risk factors.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, together called OPEC+, left the door open for reviewing their plan to add 400,000 barrels per day of supply in January.