Oil prices sink again as traders use Omicron as an excuse to hit ‘sell’

(Reuters) -Crude oil futures settled lower on Wednesday, as an early rally fizzled and selling intensified on worries the Omicron variant of coronavirus could cut oil demand as global supply builds.

Late in the session, oil prices dropped into negative territory after U.S. officials said the Omicron variant – believed more transmissible than previous strains of coronavirus – had been found in the country.

“When the markets gets hit with news about Frankenstein variants, you’re selling and asking questions later,” said John Kilduff, partner at Again Capital LLC in New York, said he expects more bullish momentum to return whenever WTI crosses above $70 a barrel.