Yet now oil prices are surging back as it is clear that omicron will not shut down the global economy nor will it shut the U.S. economy, where we are still the world's biggest consumer of oil.
President Biden acknowledged as much, lowering fears of a COVID-19 shutdown, and said Monday, "There is no federal solution. This gets solved at the state level." In other words, a lockdown is off the table. Yet what may turn oil around are reports that people who catch the omicron variant might strengthen immunity against the earlier delta strain of the virus.This could be big news for oil demand. Historians and scientists say that viruses that cause pandemics often mutate to become less life-threatening. The devastating 1918 Spanish flu pandemic reportedly ended as more people became exposed to the virus and the strains became less life-threatening.
Bloomberg News reported. "While omicron has been shown to be highly transmissible and can evade some antibodies, after two weeks of getting symptoms immunity to subsequent infections from the strain rose 14-fold, according to the authors led by Alex Sigal and Khadija Khan of the Durban, South Africa-based Africa Health Research Institute. A smaller improvement was found against delta," it continued.
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