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The “OPEC +” result reflects a decline in fears about the risks of excess oil and Omicron

Date:

“OPEC +” pledges to increase production to 400,000 barrels per day in February (cartridge)

Analysts and sources told Reuters that today, Wednesday, was the end of the camp.OPEC +“, This week, Ensure planned increase in oil production In February, a huge surplus will ease fears Oil In the first quarter, market guidance was in addition to the desire for sustainability.

The Organization of the Petroleum Exporting Countries (OPEC) and a group of producing countries, including its allies, led by Russia, decided to increase production by 400,000 barrels a day yesterday, Tuesday and next February.

The United States has been pushing for more crude oil to be pumped in to support the global economic recovery from the epidemic, and quieter prices have reached $ 80 a barrel. However, “OPEC +” said the market does not need much oil.

During the talks, ministers and officials reviewed internal “OPEC +” data ahead of Tuesday’s meeting, indicating an increase of 800,000 barrels per day in January and 1.3 million barrels per day in February.

Although it represents a surplus of demand, it’s much lower than the initial estimates that raised concerns. Barrels a day in February.

A spokesman for the OPEC + meeting, referring to expectations for the first quarter of the year, said “the picture has improved since the previous end.” He added: Shares are down.

Other delegates said the adjustment was part of a revised OPEC + estimate. Omigron From the corona virus, its impact will be limited to demand, and the inability of some manufacturers to increase production; Due to factors controlling productivity, the actual increase in supply will be less.

See also  Oil will close near the 3-year summit ahead of the OPEC + meeting

Investors agree that the Omicron effect is small.

Has risen Oil prices At $ 80 a barrel, almost back to where it was on November 26, news began to spread about the emergence of a new mutation, which led to a price drop of more than 10% in a single day.

On Tuesday, Russian Deputy Prime Minister Alexander Novak said the camp believed there was uncertainty about Omigran’s spread, but “observations and analyzes show that despite the high level of contagion.” Adequate is low, and it has no effect on low demand. “

Barbara Lambrecht, a researcher at Commerzbank, warned that sentiment could change rapidly, citing the possibility of tightening controls on the Omicron movement, but added: “Currently everything seems to be going smoothly for OPEC +.”

“OPEC +” sources said, “The federation is keen to follow its previous guidelines for the market,” Novak, the head of the Moscow delegation, stressed at the OPEC + meeting in December.

The meeting was relatively short by “OPEC +” standards because it started at 12:30 GMT and lasted less than two hours, and delegates described it as “easy and without problems”.

A source at “OPEC +” said: “We need stability. I’m glad we started this year on a smooth basis.”

(Reuters)

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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