OPEC and its allies have postponed technical meeting to later this week, allowing themselves more time to assess the impact of the Omicorn variant on global demand for oil, according to a report by Reuters.
Earlier oil crashed by more than 10% on Friday marking the largest one-day drop since April 2020 after traders priced in concerns of potentially weaker oil demand
According to Reuters report, its OPEC sources said, “We need more time to understand what this new variant is and if we need to overreact or not.”
Crude oil futures pared some earlier losses on overreaction and trading in the green with WTI climbing by $3.65 a barrel to $71.80 and Brent advanced by $3.60 a barrel to 76.32 as of Thailand time 10:09 hours.
Meanwhile, oil prices also added positive sentiment from resumption of talks of reviving 2015 Iran nuclear deal which is to begin on Monday in Vienna.