Oil jumps nearly 4% as Omicron variant impact seen as short-lived

Oil soared nearly 4% on Tuesday, supported by tight supply and expectations that rising coronavirus cases and the spread of the Omicron variant will not derail a global demand recovery.

Brent crude gained $2.85, or 3.5%, to $83.72 a barrel, its highest settlement since early November. The global benchmark dropped 1% on Monday.

U.S. West Texas Intermediate (WTI) rose $2.99, or 3.8%, to end at $81.22, also its highest price since mid-November. On Monday, it fell 0.8%.

U.S. Federal Reserve Chair Jerome Powell said he expects the economic impact of Omicron to be short-lived, adding that ensuing quarters could be very positive for the economy after the surge driven by the variant subsides.