Fed chair sees 'short-lived’ effects from Omicron variant and signals US economy is ready for tighter monetary policy
London — Oil prices hit two-month highs on Wednesday on tight supply and easing concerns about the impact of the Omicron variant of the coronavirus on demand.
Brent crude futures were up 34c, or 0.4%, at $84.06 a barrel at 9.18am GMT. West Texas Intermediate was up 49cs, or 0.6%, to $81.71 a barrel. Both contracts are set for their sixth session of gains out of eight. Opec+ producers continue to hold back more than 3-million barrels per day in output, while sanctions on Iran are pinning down its exports.
“Assuming China doesn’t suffer a sharp slowdown, that Omicron actually becomes omi-gone, and with Opec+’s ability to raise production clearly limited, I see no reason why Brent crude cannot move towards $100 in Q1, possibly sooner,” said Oanda analyst Jeffrey Halley.