Oil gains more than 3% on speculation Omicron-related drop overdone | Reuters

Oil gains more than 3% on speculation Omicron-related drop overdone | Reuters

Oil bounded upward Monday, briefly touching highs above $77 a barrel as some investors viewed Friday's slump in oil and financial markets as overdone absent more data on the Omicron coronavirus variant.

If the new variant of the virus proves vaccine resistant or more contagious than other variants, it could impact travel, commerce and petroleum demand.

Top officials from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, echoed that view, with the Saudi energy minister quoted as saying he was not worried about the Omicron variant.

The World Health Organization has said it could take weeks to understand the variant's severity, though a South African doctor who has treated cases said symptoms seemed to be mild so far. read more

Brent crude was up $2.28, or 3%, at $75.02 a barrel by 12:29 p.m. Eastern (1729 GMT), having slid by $9.50 on Friday. U.S. West Texas Intermediate (WTI) crude was up $2.93, or 4.3%, at $71.08, having tumbled by $10.24 in the previous session. Brent briefly surged above $77 a barrel, while U.S. crude went above $72.

Brent prices have given up $10 in the past two weeks.