NEW YORK: Oil posted gains late on Monday but ended the session higher as investors looked to a bearish Friday in oil and financial markets as more data on the Omicron coronavirus pandemic was absent.
Brent briefly climbed above $77 a barrel, while US crude touched a high above $72. However, both contracts delivered gains late in the season.
Brent crude futures were up 72 cents, or 1%, at $73.44 a barrel, having closed Friday lower at $9.50. US West Texas Intermediate (WTI) crude rose $1.80, or 2.6%, to $69.95 a barrel. The contract fell $10.24 in the previous session.
In post-settlement trade, Brent briefly turned negative territory with smaller volumes.
Friday’s slide was the biggest one-day drop since April 2020, reflecting fears that travel restrictions related to the coronavirus will hit demand. The decline was accelerated by low liquidity due to the US holiday.
Michael Tran, an analyst at RBC Capital Markets, said: “We believe the decline in oil prices has been overstated, noting that the sharp decline in prices indicates a much weaker level of demand than is currently being observed. Is.
If the new version of the virus proves to be vaccine-resistant or more contagious than other variants, it could affect demand for travel, commerce and petroleum.
The World Health Organization has said it could take weeks to understand the severity of the variant, although a South African doctor who treated the cases said symptoms seemed mild so far.
Top officials from the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, echoed that view, with the Saudi energy minister quoted as saying he was not concerned about the Omicron version.
Omicron poses a new challenge to OPEC+, which meets on December 2 to discuss whether to move forward with January’s scheduled increase in oil production. OPEC+ postponed technical meetings this week to allow time to assess the impact of Omicron.
The Brent price has gained $10 in the past two weeks.
President Joe Biden urged Americans not to panic about the new COVID-19 omicron variant and said the United States was working with pharmaceutical companies to create contingency plans if new vaccines are needed .
Saudi Energy Minister Prince Abdulaziz bin Salman al-Saud said he was not concerned about Omicron, Ashrak Business reported, while his Russian counterpart said he saw no need for immediate action on the market.
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