Oil extended gains on Tuesday as world stocks recovered from the scare caused by the new variant of covid-19 that appeared in South Africa, ending a six-week losing streak and kicking off a new bull season.

Brent crude is currently, adding 1.63%, with the barrel worth $74.27. Meanwhile, New York-traded West Texas Intermediate (WTI) crude is up 1.80% to $70.74, surpassing the $70 barrier after posting a recovery of nearly 5% last session.

According to investors, the expectation that Omicron is not as contagious or as fatal as initially predicted has eased stock market concerns that there will be a pullback in demand for the so-called 'black gold'. Thus, in the event of further restrictive measures and further general confinements, an overall decrease in fuel consumption is expected.