Oil prices rise despite pandemic fears

Oil drilling rigs

Oil prices rose today, Jan. 3, despite continuing concerns related to oil demand amid the rapid increase in COVID-19 cases globally.

Oil prices recorded a rise of more than 50% in 2021, supported by the recovery of the global economy from the pandemic, and the direction of producers to tighten supply restrictions.

While health experts in the United States warned of serious disruptions in the coming weeks, amid expectations of deterioration in infection rates, due to the increase in holiday trips in December.

A Reuters survey at the end of last week revealed a decline in expectations for the average price of Brent crude in 2022 by about 2%, from $75.33 to $73.57 a barrel.

Attention is also turning to the OPEC+ meeting scheduled for Jan. 4, 2022, in order to determine their plan for production levels next month. Sources told Reuters that the organization may maintain its plan to add 400,000 barrels per day to production in February.

Brent crude oil futures for March delivery rose 0.8% to $78.42 a barrel at 09:00am Makkah time.

US West Texas Intermediate (WTI) crude futures for February delivery rose 0.9% to $75.87 a barrel.