International oil prices rebounded on Tuesday a day after a major fall on Monday when Brent fell 4% to $71 per barrel and West Texas Intermediate(WTI) crude traded at $66.44, down $4.42 (-6.24%) on the day.
The sharp fall was driven by fears over the spread of the Omicron variant.
However, when markets opened on Tuesday, oil recovered slightly. Brent crude rose by 84 cents, or 1.2%, at $72.36 by 4pm Pakistan time. WTI crude increased by 95 cents, or 1.4%, to $69.56 a barrel.
Analyst Saad Ali told SAMAA Money that the cases in the US and Europe of the new variant of Covid-19 have increased rapidly and caused concerns among investors.
Ali said that lockdown has been imposed in some European countries and, consequently, the demand has declined.
The Netherlands went into lockdown on Sunday and the possibility of more COVID-19 restrictions being imposed ahead of the Christmas and New Year holidays loomed over several European countries.
In addition, US health officials on Sunday urged Americans to get COVID-19 booster shots, wear masks and follow SOPs for travel over the winter holidays.
Saad Ali says the drop in the international market will not result in a price cut in Pakistan immediately.