Crude oil futures settled sharply lower on Thursday with cut of two percent on concerns about the outlook for energy demand following several countries imposing fresh restrictions on movements to curb the spread of the Omicron variant of the coronavirus. Traders weighed the latest reports on the new virus variant. While a study earlier in the week showed an additional vaccination dose from Pfizer might neutralize the variant, a report quoting a Japanese scientist says the Omicron variant is 4.2 times more transmissible. Meanwhile, British Prime Minister Boris Johnson imposed tougher COVID-19 restrictions in England, saying people should work from home where possible, wear masks in public places and show COVID-19 vaccine passes for entry to certain events and venues. Denmark also plans new restrictions, including closure of restaurants, bars and schools, while China has halted group tourist trips from Guangdong. Besides, South Korea has registered record infections while cases remain elevated in Singapore and Australia.
Benchmark crude oil futures for January delivery dropped $1.42 or 2 percent to settle at $70.94 a barrel on the New York Mercantile Exchange. Brent crude for February delivery fell $1.72 or 2.27 percent to settle at $74.10 a barrel on London's Intercontinental Exchange.