Oil prices hit two-month highs on Wednesday on tight supply and easing concerns about the potential hit to demand from the Omicron coronavirus variant.
US Federal Reserve Chairman Jerome Powell on Tuesday said that the economy of the United States, the world’s biggest oil consumer, should weather the current Covid-19 surge with only “short-lived” impact and is ready for the start of tighter monetary policy, reports Reuters.
Brent crude futures were up 47 cents, or 0.6%, at $84.19 a barrel by 1430 GMT. US West Texas Intermediate (WTI) crude futures were up 66 cents, or 0.8%, at $81.88.
Equities, which often move in tandem with oil prices, also ticked up, while a weaker dollar also lent support. A weaker greenback makes dollar-denominated oil contracts cheaper for holders of other currencies,