TD Securities: Oil In Recovery Mode As Omicron Worries Ebb

Late Wednesday saw TD Securities note that “traders are showing less concern that the new COVID variant, Omicron, will depress demand growth as much as many expected next year. The general rise in risk appetite resulting from expectations of a mild impact of Omicron trumped the lower-than-expected oil draws and the much larger-than-expected product inventory increases, which also helped the oil market rally. Given that supply growth continues to be constrained, demand continues to recover and winter could add to consumption, these benchmark crudes are likely to move well into the mid-$80s territory.”