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Oil prices rose on Monday, November 29, on speculation that OPEC + may halt the increase in oil production in light of the spread of the Omicron strain of the Coronavirus, but the atmosphere remains cautious in light of insufficient information about the new mutation.
There is concern that the new strain will impede the recovery path of the global economy, which may weaken demand for oil, while fears of an oversupply in the first quarter of next year have also increased.
Brent crude futures rose $3.17, or 4.4%, to $75.89 a barrel, after falling $9.50 on Friday.
US West Texas Intermediate crude rose $3.35, or 4.9%, to $71.50 a barrel, after falling $10.24 in the previous session.
On Friday, oil prices recorded their largest drop in a single day since April 2020 after the new strain raised fears among investors, and increased fears that oversupply could increase in the first quarter.
The OPEC+ gathering of expert-level meetings has been postponed until later this week, giving its members more time to assess Omicron’s impact on oil demand and prices, according to Reuters sources and the bloc’s documents.
The meeting of the OPEC Joint Ministerial Monitoring Committee was postponed from Tuesday to Thursday. OPEC + will also meet on Thursday when a policy decision for the bloc is likely to be announced on whether to adjust its plan to increase production by 400,000 barrels per day in January and beyond.
