Oil drops towards $73 as Omicron concerns dominate | Reuters

Oil drops towards $73 as Omicron concerns dominate | Reuters

Oil prices dropped towards $73 a barrel on Tuesday after the International Energy Agency (IEA) said that the Omicron coronavirus variant is set to dent the global demand recovery.

U.S. data showing producer prices at 11-year highs confirmed market expectations of faster stimulus tapering to emerge from this week's Federal Reserve meeting, supporting the dollar and weighing on oil, which typically move inversely. read more

Brent crude oil futures dropped 98 cents, or 1.32%, to $73.41 a barrel by 1405 GMT. U.S. West Texas Intermediate (WTI) crude futures lost 93 cents, or 1.3%, to $70.36.

"The surge in new COVID-19 cases is expected to temporarily slow, but not upend, the recovery in oil demand that is under way," the Paris-based IEA said in its monthly oil report. read more