By Gina Lee

Investing.com – Oil was up Monday morning in Asia, clawing back some of Friday’s losses. Over the finding of the new COVID-19 omicron variant, and the resumption of Iran’s nuclear deal negotiations.

By 10:23 pm ET (7:23 am GMT), the price had risen 4.62% and was $74.90. The stock also rose by 5.24%, to $71.72. Black liquid dropped more than 10% Friday due to concern about its new variant and the possibility of a large supply surplus for the first quarter 2022.

According to the World Health Organization, it’s not known if Omicron is more dangerous or transmissible than other variants. However, it has been classified as a “variant concern”. Over the weekend, cases of omicron were reported in Australia, Denmark and the Netherlands.

OPEC+ moved the Thursday meeting of its ministerial oversight committee from Tuesday to Thursday. It did this reportedly to give more time to evaluate the effects of the omicron variation on oil prices and demand. The OPEC meeting and the broader OPEC+ gathering will continue as planned on Wednesday and on Thursday. There, the cartel will determine whether it will proceed with its plan for increasing output by 400,000 barrels each day beginning in 2022.

Some investors have called for a pause in these increases after the U.S. led a coordinated release from the Strategic Petroleum Reserve last week, as well as omicron’s potential impact on fuel demand.

Hiroyuki Kukawa, Nissan Securities’ general manager of research, stated to Reuters that correction buying was based on concerns that the oil market was oversold and speculations that OPEC+ could take a step against omicrons.

He said, “All eyes will focus on how omicron affects global economy and fuel demand. Organization of the Petroleum Exporting Countries (OPEC+ action) and Iran nuclear negotiations this week.”

In the meantime, Iran and the world powers will continue talks to revive the 2015 Iran nuclear agreement in Vienna.