Oil prices bounce, but worries over omicron remain

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Oil prices bounce, but worries over omicron remain
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Oil futures bounce Tuesday, taking back some of the ground lost in the previous session's tumble, though worries about the spread of the omicron variant are...

Oil futures bounced Tuesday, taking back some of the ground lost in the previous session’s tumble as investors continue to assess the potential for the spread of the omicron variant to dent demand.

Crude tumbled sharply on Monday, but finished off session lows, as European countries imposed lockdowns and considered other restrictions on consumer activity as the omicron variant of the coronavirus that causes COVID-19 spreads rapidly around the world, including in the U.S. “Bottom line, oil did rip back off of key support in the mid-$60s yesterday and for now, the ‘OPEC+ put’ remains in play,” he said, referring to the ability of the Organization of the Petroleum Exporting Countries and its allies to keep a lid on output in response to falling prices.

Meanwhile, OPEC+ compliance with production cuts rose to 117% last month from 116% in October, Reuters reported, meaning that members continue to pump well below the group’s target.

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