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Oil prices slide as rapid omicron spread dims fuel demand outlook

Oil prices slumped on Monday as surging cases of the Omicron coronavirus variant in Europe and the United States stoked investor worries that new restrictions to combat its spread could dent fuel demand.

Brent crude futures declined $2, or 2.7%, to end the day at $71.52 per barrel, while U.S. West Texas Intermediate (WTI) crude futures settled 3.7%, or $2.63, lower at $68.23 per barrel.

Brent fell to a session low of $69.28 per barrel, while WTI sank to $66.04 per barrel, both their lowest levels since early December.

Oil prices fell despite Moderna Inc’s announcement on Monday that a booster dose of its COVID-19 vaccine appeared to be protective against Omicron in laboratory testing.

Meanwhile, OPEC+ compliance with oil production cuts stood at 117% in November, up 1 percentage point from the previous month, two sources from the group told Reuters, as output continues to lag agreed targets.

In the United States, energy companies added oil and natural gas rigs for a second week in a row.

Reference: CNBC