Omicron Variant Giving Oil Investors Reason To Pause

Oil prices continue to move lower as health officials across the globe express concerns over the new coronavirus variant. Patrick DeHaan with GasBuddy said because of Omicron, oil prices continue to drop, trading in Monday’s action in the up $60 per barrel range. He added that is starting to move fuel costs lower nationwide with the national average for a gallon of gasoline down roughly six cents per gallon. While the pandemic means oil prices are sometimes all over the map, DeHaan thinks for the time being, oil prices are in a holding pattern.

“Oil prices have somewhat violently fluctuated here as headlines change directions and lead the market up and down.  And we probably will see that continue, but I don’t really foresee $100 a barrel oil as a possibility until we have some sort of more concrete end, if, we find an end to this pandemic or if we go endemic.”

While the new variant has not forced their hand yet, DeHaan said omicron is weighing on the minds of oil producing nations.

“But ultimately last week, OPEC did agree to increase production for January, but left open the possibility that it could reverse course on that at any time, depending if there are developments in the new variant.”

What does DeHaan expect from fuel prices during the final 3+ weeks of the year?

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