Oil Rises More Than 3% Ahead of an OPEC Meeting, Amid Fears of Omicron

Oil prices rose more than 3 percent on Wednesday, offsetting some sharp losses incurred during the previous session, as major producers prepare to discuss how to deal with the threat to fuel demand from the mutated Omicron.

Brent crude futures rose $2.46, or 3.6 percent, to $71.69 a barrel by 0742 GMT, after falling 3.9 percent on Tuesday.

US West Texas Intermediate crude futures rose $2.13, or 3.2 percent, to $86.31 a barrel, after falling 5.4 percent on Tuesday.

The Organization of the Petroleum Exporting Countries (OPEC) meets on Wednesday after 1300 GMT, and before Thursday’s meeting of OPEC+, which brings OPEC together with allies including Russia.

Some analysts expect OPEC + to suspend its plans to increase 400,000 barrels per day per month in supply in January in light of a possible decline in demand due to travel restrictions to limit the spread of Omicron.

Several OPEC+ ministers said there was no need to change course.

Even if OPEC+ agrees to go ahead with the planned supply increase in January, producers may find it difficult to add that much.