WTI crude futures trying to edged higher on Thursday, recouping two-thirds of the recent Omicron-related selloff as fears that the new variant could dent global growth and fuel demand waned. Oil prices have been recovering amid positive reports suggesting the new variant may be milder than initially feared, with Pfizer and BioNTech saying on Wednesday that a booster shot of their vaccine provides a high level of protection against the Omicron strain. Moreover, an agreement to revive the 2015 Iran nuclear deal still seemed far off, while tensions between the West and Russia over Ukraine remained high, presenting geopolitical risks and keeping oil prices up.
Meanwhile, EIA data showed US crude inventories fell by a modest 0.24 million barrels in the previous week while crude inventories at Cushing rose by 2.37 million barrels, the largest increase since the week ended February 19th.
Oil Prices trading flat Producers are pushing up and consumers try to push down. First support on a decline will be 70.77 USD and first resistance to be tested is 73.57 USD.
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