Oil ends lower as traders weigh supply disruptions and omicron’s threat to energy demand

Oil ends lower as traders weigh supply disruptions and omicron's threat to energy demand

Oil futures edged lower Monday, as traders weighed supply disruptions in Kazakhstan and Libya against the threat to energy demand posed by the omicron variant of the coronavirus.

Oil held up much better than other risk assets Monday as “supply concerns continue to linger after production and pipeline outages overseas buoyed prices last week,” Tyler Richey, co-editor at Sevens Report Research, told MarketWatch.

“As far as the geopolitical tensions go, the various conflicts and threats across eastern Europe and the Middle East will remain supportive for energy in the near term,” he said. However, “it already appears that some of the supply and production disruptions are being sorted out, so that could result in a ‘sell the news’ reaction from markets in the sessions ahead, pending any new developments.”

Oil supply took a hit last week on the back of protests in Kazakhstan, while Libya has seen declines…

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