Oil steadies after data shows big increase in US stocks

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An industry report has pointed to the biggest gain in stockpiles at a key US storage hub since February

Oil steadied after a two-day rally as an industry report pointed to the biggest gain in stockpiles at a key US storage hub since February.

Crude has surged more than 8% over the past two sessions — rising along with other financial assets — on cautious optimism that the Omicron virus variant is unlikely to derail the global economic recovery. There have been few deaths from the new strain so far and little sign of a major effect on oil demand.

China continues to tackle sporadic outbreaks, with one eastern city locking down on a district to curb the spread. Omicron has led to some restrictions on air travel, and researchers in SA said the strain’s ability to evade vaccine and infection-induced immunity is “robust but not complete”. They added that booster shots would likely reduce chances of infection.

 

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