Crude oil futures ended lower on Wednesday, extending their previous session’s losses, on worries the Omicron variant of coronavirus could cut oil demand as global supply builds. The Center for Disease Control and Prevention (CDC) revealed the first confirmed case of Covid-19 caused by the new Omicron variant has been detected in the US. The CDC said the first confirmed omicron case was detected in an individual in California, who returned from South Africa on November 22, 2021. However, oil prices initially benefited from improved risk sentiment ahead of an OPEC meeting where major producers will discuss how to respond to the threat of a hit to fuel demand from the Omicron variant. Meanwhile, the Energy Information Administration released a report showing crude oil inventories dipped by 0.9 million barrels in the week ended November 26th, less than the 1.2 million drop Street had expected.
Benchmark crude oil futures for January delivery dropped 61 cents or 0.9 percent to settle at $65.57 a barrel on the New York Mercantile Exchange. Brent crude for February delivery fell 36 cents or 0.5 percent to settle at $68.87 a barrel on London's Intercontinental Exchange.