Crude Oil Price Analysis: Can oil price up again?

Oil prices are up in trading today as traders eye potential for a bounce-back after being badly beaten down at the end of last week.
WTI suffered its worst performance this year with an 11% drop to $67.50 before finding some footing again around $71.50.

Although it remains weaker than usual due mainly because there's no sign yet that supply confronted by demand will ease anytime soon—even though most analysts still think inventories have been building too much all winter long.

The oil markets were in a slump on Friday as the Omicron headlines hit. Still, there is a serious consideration that what may heavily dampen oil bullishness due to recent developments.

Suppose more people die from this virus next year. In that case, those investing money in oil will lose hope for it being an optimistic fundamental outlook that could cause them to make decisions based on fear rather than the possibility.

This passage mainly discusses how one event can change many peoples' perspectives about what they believe their future holds.

Even we saw last year oil price dropped nearly $00 for somewhile. So, if the pandemic situation becomes worse like the previous year, the oil's demand will collapse, and crude oil prices may drop again vastly.

The ramifications of an Omicron variant crisis are huge, but it's not all gloom. If border controls tighten and more onerous restrictions are imposed globally again, there will probably be no quick fix to resolve the global oil market outlook.

We should be careful until vaccinations have had their chance at relieving us from worst-case scenarios once more if they're needed even sooner than expected.

If the world leaders can control Omicron and prove nothing more than a hiccup, Friday's retreat will be quite the dip to buy in on Friday, especially when we still need a few weeks.

But, one can't rule out dead cat bounce just yet because it may take some time for things to settle and cool off from such high volatility movements.

Suppose Omicron is just a hiccup. Then, it will continue its buying pressure. And If Omicron is absolute, then it will continue its Selling pressure again.