Oil climbs over 3% on the day as OPEC+ comes into focus
Oil suffered its worst month of the year in November but bargain hunters are looking to swoop in now
Oil prices are benefiting from the more risk-on mood so far today as we see a climb of over 3% to $68.50 levels at the moment.
From a technical perspective, the bounce today isn’t amounting to anything significant but buyers will be hoping to establish a base around the $65 mark and try to build on something as we come to terms with the omicron variant.
Even if the latest strain may turn out to be something less harmful than anticipated, the action by governments across the globe to err on the cautious side is still a negative factor for oil prices in general.
Border closures and restrictive measures will only serve to dampen demand conditions in the near-term even if things may still look better in a year’s time.
It is pretty much baby steps for now and oil buyers will have to be patient to get any solid backing on the news front that they may capitalise on.
Going back to the charts, getting back above $70 will be a key psychological win for buyers but with OPEC+ coming up, don’t discount some bouts of volatility before the weekend.
The bloc is expected to pause plans for additional output increases starting from January so that will be something to watch out for in the days ahead.