CNBC's Brian Sullivan join 'Squawk Box' to report on how omicron Covid variant concerns are impacting energy markets. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi
Oil prices rose on Monday, following the biggest one-day pullback since April last year late last week.
International benchmark Brent crude futures traded at $74.60 a barrel on Monday, up more than 2.5% for the session, while U.S. West Texas Intermediate futures stood at $70.62, around 3.6% higher.
Several countries announced travel restrictions on Friday on news of the newly identified omicron Covid variant. It prompted some energy market participants to fear a return of travel bans that could weaken fuel demand.
Analysts believe Monday’s rebound in oil prices shows last week’s slump may have been overdone, although it is not yet clear how demand will be affected.
“We are living through a very fragile economic recovery and we needed to address what was an underlying factor that could threaten that recovery,” Hochstein said.
“That’s what we saw in the market last Tuesday with the U.S. moves and, quite frankly, that’s exactly what we also saw on Friday with the oil prices going down quite sharply because we are in this very fragile moment,” he added.
The World Health Organization has recognized the newly identified Covid strain, first referred to as lineage B.1.1.529, as a variant of concern. The WHO said on Monday that omicron poses a “very high” global risk, although a South African doctor has described symptoms identified so far as “extremely mild.”
The U.N. health agency has said it will take weeks to understand how the variant may affect diagnostics, therapeutics and vaccines.
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