Canvas prices sustained on Wednesday after rising in the former session on prospects that energy demand will continue to strengthen as the US Federal Reserve is likely to raise interest rates more sluggishly than anticipated. 

  Brent and US crude canvas futures are trading at their loftiest since the largely contagious Omicron COVID-19 variant surfaced in late November has not impacted energy demand the way former variants did. 

US West Texas Intermediate (WTI) crude futures rose 16 cents, or0.2 percent, to$81.38 a barrel at 0731 GMT, adding to a3.8 percent jump in the former session.  

 Brent crude futures were over 2 cents at$83.74 a barrel, after jumping3.5 percent in the former session. 

Federal Reserve Chairman Jerome Powell said on Tuesday the frugality of the United States, the world’s biggest canvas consumer, should ride the current COVID-19 swell with only” short-lived” impacts and was ready for the launch of tighter financial policy.  

“While Powell comforted the Fed will bring down rising affectation, which strengthened the rate hike outlooks in March, he also said the Fed is able of leaving strong profitable growth complete. That may lift the demand of growth-sensitive crude canvas,” said Leona Liu, critic at Singapore- grounded DailyFX. 

Data from the American Petroleum Institute (API) assiduity group, still, painted a weaker picture on energy demand, with a lower decline in crude stashes than anticipated and bigger shapes than anticipated in gasoline and distillate supplies. 

  Crude stocks fell by1.1 million barrels for the week ended January 7, according to request sources citing API numbers. That was lower than the1.9 million barrel draw that 10 judges polled by Reuters had anticipated. 

 Still, supporting the request was the US Energy Information Administration’s upgraded canvas demand outlook released on Tuesday, seeing total US demand rising by barrels per day (bpd) in 2022 from last time, over from a former cast for an increase of bpd.  

“The way (Omicron) cases are rising, it doesn’t look the situation may get better soon. Still, it fails to impact fiscal requests and canvas important as countries aren’t likely to resort to severe lockdowns,” said Madhavi Mehta, commodity exploration critic at Kotak Securities 

.”We’re more prepared with health structure as well as vaccines, so it’s seen as a minor hiatus but not a major challenge.”