Oil struggles to hold gains amid mixed demand view

Oil prices slipped on Thursday, trimming big gains from the previous two sessions, amid uncertainty over near-term demand as cases of the highly contagious Omicron variant of the coronavirus surge around the globe.

U.S. West Texas Intermediate (WTI) crude futures slipped 7 cents, or 0.1%, to $82.57 a barrel at 0221 GMT, after climbing 1.7% in the previous session, Reuters reported.

Brent crude futures shed 6 cents, or 0.1%, to $84.61 a barrel, after rising 1.3% on Wednesday.

Data from the U.S. Energy Information Administration on Wednesday showed fuel demand has taken a hit from Omicron, with gasoline stockpiles increasing by 8 million barrels in the week to Jan. 7, compared with analyst expectations for 2.4 million-barrel rise.

 “Gasoline demand was weaker-than-expected and still below pre-pandemic levels, and if this becomes a trend, oil won’t be able to continue to push higher,” OANDA analyst Edward Moya said in a note.

However, Moya added, the Omicron impact is expected to short-lived.