Omicron no longer scares the stock markets after all? Oil is gaining ground

Oil extended gains on Tuesday as world stocks recovered from the scare caused by the new variant of covid-19 that appeared in South Africa, ending a six-week losing streak and kicking off a new bull season.

Brent crude is currently, adding 1.63%, with the barrel worth $74.27. Meanwhile, New York-traded West Texas Intermediate (WTI) crude is up 1.80% to $70.74, surpassing the $70 barrier after posting a recovery of nearly 5% last session.

According to investors, the expectation that Omicron is not as contagious or as fatal as initially predicted has eased stock market concerns that there will be a pullback in demand for the so-called 'black gold'. Thus, in the event of further restrictive measures and further general confinements, an overall decrease in fuel consumption is expected.

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