TheCable

The price of crude oil dipped on Friday amid surging cases of Omicron coronavirus variant, raising concerns that new restrictions may affect fuel demand. 

Brent crude futures plunged by 1.61 percent to $73.41 per barrel at 4:09 pm, while U.S. West Texas Intermediate (WTI) crude futures dipped by 1.58 percent to $70.80 a barrel.

TheCable had reported that the international oil price rose above $75 per barrel last Friday amid ease in Omicron concerns that increasing immobility and impending lockdown would lower oil demand.

The Organisation of the Petroleum Exporting Countries, Russia, and allies, known as OPEC+, had said there could be a meeting ahead of its scheduled January meeting.

The oil cartel had noted that this meeting would be held if changes in the demand outlook needed it to review its proposed plans to increase supply by 400,000 barrels per day in January.

In its latest monthly oil market report, OPEC had forecasted that the Omicron variant of the coronavirus would have a slight effect on oil demand.

The group noted that improved COVID-19 management and rising vaccination rates, enabling economic activity and mobility to return to pre-pandemic levels, supporting transportation fuels, in particular, would determine the increase in demand for crude oil.