By Yuka Obayashi

TOKYO, Reuters – Monday’s oil prices rose, extending gains since Friday. This was due to growing optimism about the Omicron coronavirus variant’s effect on global economic growth.

Futures rose 53 cents or 0.7% to $75.68 per barrel at 0100 GMT on Friday, following a rise of 1%.

U.S. West Texas Intermediate (WTI), gained 69cs or 1.0% to $72.36 per barrel after a 1% rise in the previous session.

The benchmarks saw gains of around 8% in the last week. This was their first weekly gain for seven weeks. More than half of the losses sustained since Nov. 25’s Omicron epidemic have been recovered.

Toshitaka Takawa, an analyst with Fujitomi Securities Co Ltd. stated that “market sentiment has improved as Omicron variant threat has receded.”

He stated that WTI “will probably test its $73.34 recent high, and then attempt to increase towards $78, the level prior to the Omicron worries which led to a sharp sale-off last month.”

South African scientists have not found any evidence that Omicron is causing severe illnesses, according to officials. Officials announced Friday plans for vaccine boosters, with daily infection rates approaching an all time high.

According to the UK Health Security Agency, Booster COVID-19 shot significantly improves protection against mild Omicron-related diseases.

Investors remained cautious regarding the U.S.-led coordination release of crude reserves by oil consuming nations as well as tensions with Russia and Ukraine.

According to the U.S. Department of Energy, it sold 18 million barrels of its strategic petroleum reserves (SPR), Friday. This was part of an earlier plan to lower gasoline prices.

The Group of Seven issued a warning on Sunday that Russia could face severe consequences and heavy costs if it attacks Ukraine.

U.S. intelligence believes that Russia may be planning an offensive against Ukraine on multiple fronts as soon as next year. This could involve up to 175,000 troops.

On Sunday, the oil minister of Iraq stated that he expects the Organisation of the Petroleum Exporting Countries to continue its policy of monthly gradual increases in supplies by 400,000 bpd at their next meeting.