Oil Rally Fizzles as First U.S. Case of Omicron Rattles Markets
- OPEC+ weighing pause to supply hikes after price rout
- Powell cautions persistent higher inflation has clearly risen
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Oil fell in another volatile session with the first identified U.S. case of omicron jolting markets ahead of OPEC’s meeting with partners tomorrow to discuss output production.
West Texas Intermediate closed down 1%, erasing earlier gains of as much as 5%. The omicron variant continued to worry investors with the first case detected in California and a doubling of South Africa’s Covid-19 cases from Tuesday. Meanwhile, Federal Reserve Chair Jerome Powell reiterated that the bank must remain vigilant against inflation, which can be bearish for commodities if it takes steps to slow the pace of economic growth.