The epidemic and hawkish Fed hit market sentiment, U.S. oil fell more than 2% this week

On Friday (Dec.
17), crude oil fell $2, or 2.
72%, to close at $72.
98 a barrel
.
Recently, the number of confirmed cases of new coronary pneumonia has surged in many countries, and traders are more worried about the impact
of the omicron variant on oil demand.
At the same time, the rise in the dollar, in response to the actions of the Federal Reserve and other central banks to control inflation, also hit oil prices
.

In Denmark, South Africa and the United Kingdom, new cases of infection with the Omicron variant double every two days
.
The epidemic situation in the United Kingdom continues to deteriorate, with 93,045 new confirmed cases of new coronary pneumonia on Friday, a new high
for three consecutive days in a single day.
The UK will convene a Cabinet Emergency Response Team (COBR) meeting over the weekend to discuss issues including "devolution"
in the area of pandemic prevention and control.

Danish Prime Minister Mette Frederiksen warned on Thursday that the government could impose further restrictions to limit the spread of the
new variant.
The situation in the United States is also not optimistic, with more than 20,000 new confirmed cases of new coronary pneumonia in New York State, a record increase
in a single day.
Omicron's rapid spread has led some companies to suspend plans
to bring employees back to the office.
Fauci, director of the National Institute of Allergy and Infectious Diseases, said the severity of the Omicron infection was still unknown and that a surge in cases of the Omicron strain was "inevitable.
"

Pavel Molchanov, an analyst at Raymond James & Associates Inc.
, said we need to be prepared for the outbreak news to continue to drive the daily movement of the oil market, at least for
the rest of the winter.
Now, the pandemic is the number one variable
that affects demand on a daily basis.

Bob Yawger, head of futures at Mizuho Energy, said: "Lingering concerns about the pandemic and perceptions that it could hit demand are weighing on
the market.
Improving supply also pushed oil prices back
from multi-year highs touched earlier in the fourth quarter.
”

Asia is also showing signs of weak oil demand, while the International Energy Agency (IEA) said this week that global markets have returned to excess as omicron hits travel
.
The Organization of the Petroleum Exporting Countries (OPEC) and OPEC+, a group of Russia and its allies, said they needed to review their plans to increase supply by 400,000 barrels per day in January if the demand outlook changed, and they could bring forward
the meeting scheduled for Jan.
4.

Despite the increased uncertainty about the Omicron variant, Goldman Sachs remains bullish on oil prices
.
The company's analysts expect global average oil demand to reach record levels
over the next two years against the backdrop of rising demand for aviation and transportation and infrastructure construction.
Given OPEC+'s hesitation to unlock supply from the market and the desire of U.
S.
producers to be more fiscally responsible by drilling and borrowing, a $100 crude price is largely considered inevitable
.

Looking ahead, even struggling airlines are predicting that travel volumes will return to 2019 levels in 2023, so demand is expected to emerge
.
A coordinated global release of reserves would help lower prices for U.
S.
consumers, but is widely seen as a short-term solution
.

According to Baker Hughes Oil Services, the number of U.
S.
oil and gas rigs increased by three to 579 in the week ended Dec.
17, the second consecutive week of increase
.