Oil’s early surge cooled as traders weighed the risks to demand from the omicron variant of Covid-19 and the potential response by OPEC against U.S. assurances it could release more crude if the need arises.
Futures in New York closed up 2.6% on Monday, pairing initial gains of as much as 7% from Friday’s rout. The World Health Organization warned the new strain could have severe consequences. Meanwhile, Biden Administration officials reiterated the government’s commitment to releasing crude from the Strategic Petroleum Reserve to contain prices.
