SULAIMANI (ESTA) — Oil prices rose on Monday on speculations that OPEC+ may pause an output increase in response to the spread of Omicron.
Brent crude futures climbed $2.67 to 75.39 a barrel by 0544 GMT, after falling $9.50 on Friday.
U.S. West Texas Intermediate (WTI) crude was up $3.07 at $71.22 per barrel, having tumbled $10.24 in the previous session.
Oil prices fell more than 10% on Friday as the new variant spooked investors across financial markets.
“We saw some correction as the Friday’s plunge in oil prices has been overdone,” Reuters quoted Tatsufumi Okoshi, senior economist at Nomura Securities, as saying.
“If the market falls further, OPEC+ may pause the planned increase of crude production to support prices,” he said.
The Omicron variant spread around the world on Sunday, with new cases found in the Netherlands, Denmark and Australia.
The World Health Organization (WHO) said it was not yet clear whether Omicron, first detected in South Africa, is more transmissible or dangerous that other variants.
Meanwhile, OPEC and allies including Russia, together known as OPEC+, have postponed technical meetings to later this week in an effort to assess the impact of the new variant on oil demand and prices, sources told Reuters on Sunday.
Reuters said some analysts had suggested the group could pause the increases after the release of stocks by oil consuming countries and possible repercussions for demand from new lockdowns to contain the new variant.
OPEC+ will meet on Thursday and it is expected to announce a policy decision on whether to adjust its plan to increase output by 400,000 barrels per day in January and beyond.
