WASHINGTON, 28 December 2021, (TON): Oil rose in tandem with equity markets as investors weighed the rapid spread of omicron against signs it may be milder than previous variants.

West Texas Intermediate futures closed 2.4% higher on Monday, trading above $75 a barrel for the first time in a month amid a light volume session.

Daily omicron infections in the U.S. surpassed those in the delta wave, while China posted the highest number of cases since January.

Despite the omicron spread and airline cancellations, mobility numbers were strong over the holiday, said John Kilduff, founding partner at Again Capital LLC.

The strong economic activity has played into a “rebound in petroleum demand, which we saw this morning.”

Oil is heading for a yearly gain after a robust rebound from the pandemic, but the rally has wavered in recent weeks, in part due to concerns about omicron. There are some signs of softening consumption in Asia and crude market’s structure has weakened significantly, indicating over-supply in the near term.