Oil prices rose today as investors expect OPEC+ to temporarily cut production in response to the spread of Omicron.
Brent crude rose $3.11, or 4.3%, to $75.83 a barrel.
WTI crude rose $3.47, or 5.1%, at $71.62 a barrel.
Oil prices fell more than 10% on Friday, recording their steepest decline since April 2020, on investor concerns that the new strain of the virus could cause the global economic recovery to stall again, hurting oil demand.
Simultaneously, there are fears that oversupply could widen in the first quarter.
The Omicron variant spread earlier this week. New cases have been detected in the Netherlands, Denmark, and Australia.
WHO said it is not clear whether Omicron, first discovered in southern South Africa, is more contagious or dangerous than other species?
On Thursday, OPEC+ will meet and make a decision on whether to adjust its planned output increase of 400,000 barrels per day in January and beyond.
As analysts and investors follow how Omicron will impact the global economy and fuel demand, the question of how OPEC+ and the Iran nuclear talks will play out this week remains?
Negotiations on the resumption of the 2015 nuclear agreement with Iran will resume in Vienna on Monday.
The Spot Market is Open
Monday, November 29, 2021