Oil prices lost more than 4% during the week ending Dec. 3 due to investor concerns of lower demand from the spread of the new COVID-19 variant and over uncertainties in the OPEC+ production scheme.

International benchmark Brent crude traded at $71.60 per barrel at 1222 GMT on Friday, posting a 4.03% loss from the Monday session that opened at $74.61 a barrel.

American benchmark West Texas Intermediate (WTI) registered at $68.33 per barrel at the same time on Friday, decreasing 4.51% relative to the opening price of $71.56 a barrel on Monday.

Oil prices last week posted the largest daily drop of 10% since April last year, as the new coronavirus variant, omicron, alarmed investors of a possible decrease in demand.

The bearish sentiment continued up to Thursday when major oil producers met to discuss their production volume for January.

OPEC+ producers agreed to extend the existing deal to incrementally increase production cuts amid several concerns caused by omicron and the US-led international initiative to sell oil from Strategic Petroleum Reserves (SPR) to reduce high energy prices.

The OPEC+ cartel will raise production by 400,000 barrels per day (bpd) in January. However, the group promised to monitor developments over omicron until their next meeting on Jan. 4, and 'make immediate adjustments if required.”

Prices started to claw back after the OPEC+ decision with investor confidence boosted that major oil producers will intervene in any pandemic-related fluctuations.

Investors are now monitoring whether the group will pause the output increase if oil demand weakens again due to worsening COVID-19 restrictions./aa