By Yuka Obayashi

TOKYO (Reuters – Oil prices rose Thursday on concerns that OPEC+ could halt supplies as a result of growing concern over the Omicron Coronavirus variant’s spread, which has been weighing on fuel demand and the global economy.

U.S. West Texas Intermediate crude oil futures rose 48 cents or 0.7% to $66.05 per barrel at 0140 GMT on Thursday, following a 0.9% decline on Wednesday.

After a 0.5% decrease in the previous session, futures were 0.7% higher at $69.35. They had been up 48c, or 0.7%.

According to Toshitaka Takawa (an analyst at Fujitomi Securities Co Ltd.), “Oil prices rose as investors expect that OPEC+ would decide to keep the current supply levels for January to cushion any damage to demand from Omicron spread.”

On Thursday, the Organization of the Petroleum Exporting Countries (OPEC+) will decide whether or not to increase oil supply as originally planned.

The group is adding an extra 400,000 barrels per month (bpd), to the global supply every month since August as it slowly reduces its record-breaking 2020 cuts.

However, the new version has made it more difficult to make decisions. Some observers speculate that OPEC+ might halt those additions in January as a way of slowing supply growth.

Omicron, the most prevalent coronavirus variant of South Africa’s Omicron virus is quickly becoming dominant in South Africa just four weeks after its first detection. Omicron was identified in the United States by the United States on Wednesday.

Since Thursday’s shock news about Omicron, global oil prices fell more than $10 per barrel.

David Turk, U.S. Deputy Secretary of Energy, stated that President Joe Biden may adjust the time of planned releases of strategic crude oils stockpiles in case of a drop in global energy prices.

On Thursday, oil market gains were limited by the U.S. weekly inventories data showing stocks falling less than forecast last week. Meanwhile gasoline and distillate inventories rose more than expected due to weaker demand. [EIA/S]

The Energy Information Administration (EIA), which reported that crude inventories dropped by 910,000 barrels over the week ended Nov. 26, compared to analyst estimates in a Reuters survey for a decline of 1.2million barrels.