OPEC and its allies agreed to restore more halted production as the forecast for global oil markets improved, despite the emergence of the Omicron variant.
- The 23-nation group led by Saudi Arabia and Russia agreed to a 400,000 barrel-per-day increased set for February at a meeting on Tuesday.
- The alliance is holding onto its plan to slowly restore output halted over the pandemic after its analysts projected a smaller surplus this quarter than initially expected.
- Global fuel consumption continues to rebound from 2020’s plunge. There’s increasing traffic and factory activity across major Asian consuming nations and falling crude inventories in the US.
- There are concerns on whether OPEC+ will actually fulfill the entire monthly increase, considering the recent challenges of some members such as Angola and Nigeria to meet their production targets.
Production will surpass demand globally by 1.4 million barrels per day in the first three months of 2022, compared with 1.9 million in its previous review.
CL1! up +1.64%, USOIL up +1.59%Source: OPEC