WTI Crude Climbs Back to USD 71

WTI crude futures jumped around 4% to above USD 71 per barrel on Tuesday, after falling more than 5% in the previous two sessions as traders reassessed the demand outlook amid rising Covid cases globally and fresh lockdowns in some countries.

British Prime Minister Boris Johnson said he would tighten restrictions to counter the fast-spreading omicron strain if needed after the Netherlands began a fourth lockdown and other European countries considered holiday restrictions.

In the US, the Omicron variant became dominant and makes up 73.2% of recent cases while Moderna said that a booster shot of its vaccine appeared to be protective against the new variant in laboratory testing.

On the supply front, compliance of OPEC+ members with oil production cuts rose to 117% in November from 116% a month earlier, indicating production levels remained well below agreed targets. Meanwhile, investors also await inventory reports from the API due later in the day.