Rally over 7.5% for oil per week

Oil prices closed with gains on Friday, widening the “black gold” rally in the week, leading it to the biggest rise on a 5-day basis since the end of August.

Oil is on a strong uptrend as concerns about the impact of the new Omicron mutation on economic activity and energy demand are easing, but analysts say it is too early for a safe assessment of the mutant strain’s impact on the pandemic and consequently in the world economies.

“Even before the Omicron threat dominated the news, the outlook for oil was … precarious amid expectations of a return to oversupply in the coming months,” FXTM analyst Lukman Otunuga told MarketWatch.

“With the new mutation threatening to slow global demand and OPEC + to proceed with the planned increase in oil production in January by 400,000 barrels per day, oil remains vulnerable to losses,” he said.

Meanwhile, the yield on the 10-year government bond The US is currently down 1.2 basis points at 1.47%. In the week, the 10-year government bond has strengthened by about 17 basis points. The dollar shows losses of 0.2% to 96,268 points, according to the ICE US Dollar Index, while in the week it loses 0.1%.

In this climate, the West Texas Intermediate The January delivery was up 73 cents, or 1%, on Friday, at $ 71.67 a barrel on the New York Mercantile Exchange. On a 5-day basis, the WTI strengthened by 8.2%, its largest weekly increase since the period ended August 27, according to FactSet.

The Brent oil February delivery added 73 cents, or 1%, to close at $ 75.15 a barrel on ICE Futures Europe. Brent climbed 7.5% during the week, also recording its biggest weekly rise since the 5-day period that ended on August 27.

This was the first lucrative week for oil, after 6 consecutive 5-day losses.