Saudi Aramco: Oil markets have overreacted to Omicron fears
The market initially overreacted, said the CEO

The reaction of the oil market to the new Omicron COVID variant on Friday was exaggerated, according to the CEO of the world's largest oil company and largest oil exporter.
The market overreacted on Friday, said Saudi Aramco's CEO Amin Nasser, according to a report by the Saudi broadcaster Al Arabiya TV.
Oil prices slumped more than 11 percent on Friday amid low liquidity over a long U.S. weekend after news of a heavily mutated, under-explored new variant of the coronavirus was discovered in South Africa. Equity markets crashed around the world as well, and the price of oil led the crash in commodities markets as market participants feared a further slowdown in global oil demand, although the market expects a surplus for the next year as well.
Many countries have banned South Africa and other African countries from flying, some - like Israel and Japan - closed borders to foreign visitors, while others, like the United Kingdom, tightened entry requirements by preventing all foreign visitors regardless of their vaccination status. required a PCR test and self-isolation until negative.
Oil prices rebounded more than 5 percent early Monday as the market assessed the new threat to oil demand and waited for more information on the new variant of COVID. The US benchmark, WTI Crude, climbed back above $ 70 at 9:07 a.m. EST, trading at $ 72.72 after slipping below $ 70 on Friday.
Aside from the hints on Omicron, this week the market will also be waiting for the OPEC + monthly meeting on Thursday, when the January production volumes will be set.
Some analysts assume that OPEC + will decide to suspend the monthly production increases at least in January, as oil demand is threatened by the new variant and a surplus is expected early next year.
Russian Deputy Prime Minister Alexander Novak said on Monday that OPEC + will discuss possible measures at their meeting, but that Russia currently sees no need for urgent action.
"We will monitor the situation carefully, but there is no need to make hasty decisions," said Novak.





