Oil prices post weekly loss on Omicron uncertainty

Oil prices fell and were also down on the week as surging cases of the Omicron coronavirus variant raised fears that new restrictions may hit fuel demand.

“There are concerns about COVID that won’t go away, and the perception that could weigh on demand is putting pressure on the market,” said Bob Yawger, director of energy futures at Mizuho in New York.

Brent crude futures settled down $1.50, or 2%, at $73.52 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped $1.52, or 2.1%, to settle at $70.86 a barrel. Brent was down 2.6% on the week and WTI fell 1.3%.

In Denmark, South Africa and Britain, the number of new Omicron cases has been doubling every two days. Danish Prime Minister Mette Frederiksen said on Friday her government would propose new restrictions to limit the spread.

In the United States, the rapid spread of the Omicron variant has led some companies to pause plans to get workers back into offices.

The U.S. oil rig count, a leading indicator of output, rose in the week, prompting concerns of potential oversupply. The oil and gas rig count, an early indicator of future output, rose by three to 579 in the week to Dec. 17, energy services firm Baker Hughes Co said in its closely followed report.