“While the new Omicron variant seems to be more infectious than the Delta variant, we still have little to no information regarding the fatality rates or what it’s effects are on the people already vaccinated.
“In terms of the market, covid led to a massive rally in the global stock market, and I doubt that Omicron alone can erase all those gains.
However, “fear surrounding the new variant may lead to travel restrictions and lockdowns, which can in turn reduce demand for oil, thereby cooling off inflationary pressures to some extent.
Indian stock markets were down sharply today as the country recorded more cases of the Indian Omicron variant over the weekend, while investors awaited a RBI decision due later this week.
Meanwhile, global oil prices rose by more than $1 a barrel after top exporter Saudi Arabia raised prices for its crude sold to Asia and the US and as indirect U.S.-Iran talks on reviving a nuclear deal appeared to hit an impasse.
Brent crude is down 15% since late November to just below $70 a barrel, reducing this year’s gain to 35%.