Omicron lockdown fears eased, with oil prices surging 5 percent to their biggest gain in three and a half months

On Monday (December 6), crude oil rose 5.
42% to close at $73.
67 per barrel
.
Preliminary data from South Africa, the epicenter of the Omicron outbreak, showed that hospitalizations had not surged, and the market believed that it would be less disruptive, easing fears of lockdowns and giving oil prices upward momentum
.

South Africa reported that local cases of Omicron infection have so far shown only mild symptoms, and Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, told CNN that "it doesn't look serious.
"
At the same time, he cautioned that it was too early
to draw conclusions.
The White House said Monday that President Biden's public health advisers are reconsidering daily banning
foreign nationals visiting eight southern African countries.

Ed Moya, senior market analyst at Oanda Corp.
, said Wall Street seemed optimistic about expecting the growth outlook to be the same, as omicron's symptoms did not appear to be as severe
as Delta.
Phil Flynn, senior analyst at Price Futures Group, said all the news was positive today and momentum seemed to be picking up
.

The Biden administration's efforts to lower energy prices took a step forward on Monday, with the first tender for the release of 32 million barrels of the Strategic Petroleum Reserve closed
.
When first announcing the release of a total of 50 million barrels of strategic petroleum reserves last month, the U.
S.
Department of Energy said the first batch of bids for the release would close
at 10 a.
m.
Central Time on Monday.
While the winning bid won't be announced until Dec.
14, at least two international refiners have expressed interest
, according to people familiar with the matter.
This is part of the Biden administration's
move to lower oil prices.
The U.
S.
government will announce a tender
for another 18 million barrels later this month.

Iraqi Oil Minister Ihsan Abdul-Jabbar said oil prices are expected to recover and exceed $
75 a barrel in the coming months, Iraqi state news agency INA reported.
Due to international variables and the coronavirus pandemic, it is difficult for OPEC to set an oil price target
.
Iraq cannot tolerate a sharp drop in oil prices, and the country is working with OPEC to stabilize oil prices
.
OPEC is actively controlling the oil market, and Iraq currently exports 3.
7 million barrels of oil per day, and the country's interests depend on OPEC's balancing decision
.

Saudi Arabia on Sunday raised its official selling price for all grades of crude in Asia and the United States in January, up to $0.
80 from the previous month
.
According to a statement from Saudi Aramco, prices for all grades of crude exported to Asia and the United States will be raised in January
.
For Asian buyers, the price of the most important Arabian Light crude will increase by 60 cents, an adjusted premium of $3.
30 over the Dubai/Oman benchmark price, compared with $1.
30 and $2.
70 for the same product in November and December
, respectively.
For U.
S.
buyers, Aramco continued to raise its January light crude price by 40 cents, a premium of $2.
15 over the U.
S
.
Sour Crude Index (ASCI).

Aramco's price hikes were in line with expectations from Asian traders and refiners surveyed, suggesting that the oil giant's management remains optimistic
.
Saudi Aramco CEO Amin Nasser also said in an interview that he is personally "very optimistic about demand" and that the market's
reaction to Omicron has gone too far.

The United States said over the weekend that the likelihood of Iran rejoining the nuclear deal may be declining
.
It was one of the most pessimistic assessments of the prospects for negotiations in the United States to date, dispelling expectations
that Iranian oil would soon return to the market.
Weakening prospects for increased Iranian oil exports also boosted oil prices
.
Ed Moya, senior market analyst at Oanda Corp.
, said Wall Street seemed optimistic about expecting the growth outlook to be the same, as omicron's symptoms did not appear to be as severe
as Delta.