Crude oil price is up nearly 4 percent and trading at a 9-week high. In the current year, it is up almost 8 percent and not just crude but gasoline and heating oil also are trading at an 8-week high.

There are tight supply expectations especially with winters freezing oil wells and reducing pipe flows building up concerns and a sense of supplies.

Also, statements coming from various country Premiers that rising Omicron cases will not derail global demand.

Also Read: Indian Oil Corporation to invest Rs 9,028 cr for new crude oil pipeline from Mundra

There are also report from the US government on crude where they are expecting the supply growth to decline, but the demand growth to continue higher for this year and 2023 as well; also, there is weakness in the US dollar and all of these factors have been supportive for crude oil.

Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.

First Published:Jan 12, 2022 8:22 AM IST