1) IEA trimmed oil outlook amid the spreading of omicron variant
The International Energy Agency (IEA) wrote in the Oil Market Report, published on Tuesday, saying that the organization expected oil demand in December and 2022 will be pressured by the Covid-19 omicron variant and revised down its outlook by 100,000 barrels per day for the remainder of this year and 2022.
IEA now expects oil demand to rise by 5.4 million barrels per day in 2021 and 3.3 million barrels per day in 2022 which will be at the pre-Covid level of 99.5 million barrels per day globally.
2) Pfizer’s Covid-19 pills show effectiveness against omicron, according to study
Pfizer Inc. on Tuesday said that its preliminary laboratory tests of an antiviral Covid-19 pill, Paxlovid, still showed near 90% efficacy in preventing hospitalizations and deaths in high-risk patients while retaining effectiveness against the new omicron variant.
3) The market expected Fed to take new approach on rate hike
The market expected the U.S. Federal Reserve to announce a major policy shift at the end of its two-day meeting on Wednesday that will pave the way for a first rate hike next year. Meanwhile, the market is also anticipating that the central bank will hasten the tapering program from the previous ending in June to March.
4) WHO warned omicron is spreading faster than any other strains
The World Health Organization (WHO) said that the Covid-19 omicron variant is spreading faster than any previous variants and this new strain is probably present in most countries around the world.
“Omicron is spreading at a rate we have not seen with any previous variant,” said WHO Director-General Tedros Adhanom Ghebreyesus during a Covid update in Geneva. “Seventy-seven countries have now reported cases of omicron. And the reality is that omicron is probably in most countries, even if it hasn’t been detected yet,” he added.
