Oil is up over 1% on the day as the rally since the turn of the year stretches on.
It has been an impressive week for oil, all things considered. There were some intraday dips amid some knocks to risk sentiment but they have been quickly bought up and here we are. I reckon that speaks quite a bit to underlying sentiment. As things stand, oil looks poised for a third straight weekly gain with the jump this week closing in on 7%.
For now, the $80 mark offers daily resistance going into the close today still. But if buyers can keep a break above that, there's a good chance for oil to stay the course and work towards $85 again next.
Something working in oil's favour is that there are ongoing supply/output constraints, even if OPEC+ is looking to hike output in February as planned. However, as much as the rise this week is encouraging, there are still risks to be mindful of.
Omicron is of course the biggest threat and how that impacts large oil importers and especially China is something to be wary about. Besides that, a general look at risk sentiment is also perhaps something to consider. Stocks are looking a little vulnerable and that could see the optimism in oil fade if a risk rout starts to come about.
