Oil rises towards $75 as U.S. demand and Fed outweigh virus concern | Reuters

Oil rises towards $75 as U.S. demand and Fed outweigh virus concern | Reuters

Oil rose towards $75 on Thursday, supported by record U.S. implied demand and falling crude stockpiles, even as the spread of the Omicron coronavirus variant threatens to put a brake on consumption globally.

Crude and other risk assets such as equities also got a boost after the U.S. Federal Reserve gave an upbeat economic outlook, which lifted investor spirits even as the Fed flagged a long-awaited end to its monetary stimulus.

Brent crude oil was up 65 cents, or 0.9%, to $74.53 a barrel at 1215 GMT, while U.S. West Texas Intermediate (WTI) crude rose $1.01 or 1.4%, to $71.88.

Demand has been rising in 2021 after last year's collapse, and the U.S. Energy Information Administration (EIA) on Wednesday said product supplied by refineries, a proxy for demand, surged in the latest week to 23.2 million barrels per day (bpd).