The market surged on Friday, Saudi Aramco chief executive Amin Nasser said, Saudi broadcaster Al Arabiya reported.
Oil prices collapsed by more than 11% on Friday amid low liquidity during a festive long weekend in the United States, after news of a new variant of the highly mutated and poorly researched coronavirus detected in South Africa. Global stock markets also plunged, and oil led the commodity market crash, with participants worried about a further slowdown in global demand for oil, as the market also expects a surplus. next year.
Many countries have banned flights from South Africa and other African countries, some, like Israel and Japan, have closed borders to foreign visitors, while others, like the UK, have Tightened entry requirements by requiring all foreign visitors, regardless of their immunization status, to take a PCR test and self-isolate until they test negative.
Oil prices rebounded more than 5% early Monday as the market assessed the new threat to oil demand pending more information on the new COVID variant. The U.S. benchmark, the WTI crude, rebounded above $ 70, to $ 72.72 at 9:07 a.m. EST, after slipping below $ 70 on Friday.
Along with hints on Omicron, the market will also wait this week for the monthly OPEC + meeting on Thursday, which is expected to decide production levels for January.
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Some analysts believe OPEC + will decide to halt monthly production increases, at least in January, due to the threat to oil demand for the new variant and a likely surplus early next year.
OPEC + will discuss potential measures at the meeting, Russian Deputy Prime Minister Alexander Novak said on Monday, but noted that Russia currently does not see the need for urgent measures.
“We do not see such a need, we will monitor the situation carefully, but there is no need to rush to make hasty decisions,” said Novak.
By Michael Kern for Oil Octobers
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