Crude oil futures were up significantly in mid-Monday in Asia as the market regained some calm after concerns on the new COVID-19 omicron variant resulted in a 10% tumble on Friday. The ICE January Brent futures contract rose $3.24 (4.46%) to $75.96 per barrel in Singapore at 0141 GMT, while the NYMEX January light sweet crude contract gained $3.44 (5.05%) to $71.59 per barrel. Traders also returned to buy the dip following Friday’s rout, but analysts warned that the impact of the new strain was still uncertain.
The omicron variant was first detected in southern Africa. Several countries have reinstated travel bans from the region, with Israel imposing a ban on the entry of all overseas visitors. Botswana, South Africa, Hong Kong, Belgium, Germany, Italy, the Czech Republic, Australia, and the UK, have all reported cases involving the omicron variant in their territories. Initial reports suggest that the new variant caused relatively mild symptoms, but it remained unclear whether existing vaccines would be effective against this strain.
