Oil edges lower as investors try to assess Omicron’s full impact

Oil prices edged lower on Wednesday, reversing gains from earlier the week, as investors tried to assess the full impact of the Omicron coronavirus variant on global fuel demand and the effectiveness of existing vaccines.

Brent crude futures dropped 25 cents, or 0.3 per cent, to $75.19 a barrel at 0659 IST, after settling 3.2 per cent higher on Tuesday. US West Texas Intermediate crude was at $71.86 a barrel, down 19 cents, or 0.3 per cent, having gained 3.7 per cent in the previous session.

Oil prices rebounded earlier this week from a collapse last week on rising optimism that the new Omicron variant will not cause major economic damage.