Oil prices rebounded on Monday as investors looked for bargains after Friday's slump and on speculation that OPEC+ may pause an output increase in response to the spread of Omicron, but the mood remained cautious with little known about the new variant.
Prices jumped over 4%, recovering some ground after plunging more than 10% in the previous trading session. On Friday, oil prices posted their biggest one-day drop since April 2020 as the new variant spooked investors across financial markets.
Brent crude futures climbed $3.17, or 4.4%, to $75.89 a barrel by 0748 GMT, after falling $9.50 on Friday.
U.S. West Texas Intermediate (WTI) crude was up $3.35, or 4.9%, at $71.50 a barrel, having tumbled $10.24 in the previous session.
There are worries the new variant could derail the global economic recovery, potentially hurting oil demand, while it has also added to concerns that a supply surplus could swell in the first quarter, Reuters reported.
OPEC's joint ministerial monitoring committee was delayed from Tuesday to Thursday. OPEC+ will also meet on Thursday, when a policy decision will likely be announced on whether to adjust its plan to increase output by 400,000 barrels per day in January and beyond.
