On Monday, oil prices are rising rapidly amid investors seeking bargains after Friday's plunge and speculation that OPEC+ may suspend production increases in response to the spread of the new variant of the Omicron coronavirus, Investing.com reports.
However, market sentiment remains cautious as little is known about the new option.
Brent futures price increased by 3.6% to $75.34 per barrel, WTI – by 4.31% to $71.09 per barrel.
Oil prices plunged more than 10% on Friday, the largest one-day drop since April 2020, as the new strain scared investors across financial markets.
Emerged concerns of the spread of a new coronavirus type could weaken oil demand and undermine the global economic recovery, while fears have increased that an oversupply may arise in the first quarter.
“We saw some correction as Friday's oil price drop was excessive,” said Tatsufumi Okoshi of Nomura Securities. "If the market falls further, OPEC+ may suspend the planned increase in oil production to maintain prices."