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·                     Oil rises on views OPEC+ may pause supply addition amid omicron fears

Oil prices rose on Thursday, reversing the previous day’s losses, on expectations OPEC+ may pause supply additions amid growing concern the spread of the omicron coronavirus variant could weigh on the global economy and fuel demand.

U.S. West Texas Intermediate (WTI) crude futures gained 48 cents, or 0.7%, to $66.05 a barrel by 0140 GMT, after a 0.9% drop on Wednesday.

Brent crude futures were up 48 cents, or 0.7%, at $69.35, having eased 0.5% in the previous session.

 

·                     Oil prices sink again as traders use Omicron as an excuse to hit 'sell'

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.

Oil prices fell into the red in late afternoon trading on Wednesday after the CDC confirmed the firm omicron case in the U.S.

WTI U.S. crude futures settled down 61 cents, or 0.9%, at $65.57 a barrel. During the session, they were up as much as 4%.

Global benchmark Brent crude was down 36 cents, or 0.5%, at $68.87 a barrel.

·                     OPEC to decide on oil output policy as omicron Covid variant rattles markets

There is little sign the broader group, often referred to as OPEC+, intends to change course from its current output plan of a monthly hike of 400,000 barrels per day.

 

OPEC ministers representing Saudi Arabia and Iraq have both indicated the group is likely to sustain this output policy, while non-OPEC leader Russia said earlier this week that there would be no need for urgent action on the oil market.

 

OPEC+ sees the oil surplus worsening to 2 million barrels per day (bpd) in January, 3.4 million bpd in February and 3.8 million bpd in March next year, an internal report seen by Reuters showed.

 

Some analysts expect OPEC+ to pause plans to add 400,000 bpd of supply in January.

 

Several OPEC+ ministers, though, have said there is no need to change course.

 

But even if OPEC+ agrees to go ahead with its planned supply increase in January, producers may struggle to add that much.

 

A Reuters survey found OPEC pumped 27.74 million bpd in November, up 220,000 bpd from the previous month, but that was below the 254,000 bpd increase allowed for OPEC members under the OPEC+ agreement.

 

In a bearish sign for demand, data from the American Petroleum Institute industry group showed U.S. crude stocks fell by 747,000 barrels in the week ended Nov. 26, according to market sources, a smaller decline than expected.

Government stockpile data is due at 1530 GMT.

Reference: CNBC