Monday’s oil rebounded nearly 5% to $ 76 a barrel as some investors saw Friday’s oil and financial market downturn as exaggerated in concerns about the Omicron variant of the coronavirus. became.
The World Health Organization has announced that it may take several weeks to understand the severity of the mutation, but South African doctors who treated the case have stated that the symptoms have been mild so far.
Brent crude rose $ 3.24 (4.5%) to $ 75.96 by 1047 Greenwich Mean Time, after falling $ 9.50 on Friday. US Crude Oil West Texas Intermediate (WTI) rose $ 3.12 (4.6%) to $ 71.27 after falling $ 10.24 in the previous session.
“There was a correction because the fall in oil prices on Friday was exaggerated,” said Tatsufumi Ogoshi, chief economist at Nomura Securities. The Friday decline is the largest one-day decline since April 2020 and reflects concerns that a travel ban may boost fuel demand. The slump was exacerbated by the low liquidity of US holidays, analysts said, as demand concerns could not justify such a decline. “Due to fear, Friday’s financial markets are under control,” said Norbert Lucker of Julius Baer, a Swiss bank at.
“In principle, the announced and enacted restrictions on international air traffic cannot explain such a sharp decline.”Investors have been waiting for the details of the variant, so it looks calm on Monday in the financial markets. I’m back at. European stocks recovered while safe shelter bonds lost ground.
“If you’re a speculative or physical oil buyer, you have to believe that Friday’s lows were probably a bargain this year,” said Jeffrey Halley of brokerage firm OANDA.
Japan announced on Monday that it will close its borders with foreigners as the world’s third-largest economy, along with Israel, is taking the strictest measures against this variant. The advent of Omicron poses a new challenge to OPEC and its allies, OPEC +. They meet this week to set policies.
The group has postponed a technical meeting this week to give it time to assess the impact of Omicron, but Russia does not believe it needs to take urgent action in the market and may change OPEC + oil trading. Is disregarded.This week’s oil market radar also could increase global supply if negotiations to revive Iran’s 2015 nuclear deal resumed on Monday and reached.