OPEC and its allies agreed at their meeting last night (December 2) to follow the existing monthly policy to increase oil production. Although fears that the U.S. policies and coronavirus variants will lead to new oil prices.
- Brent crude was up 80 cents, or 1.2%, at $69.67 a barrel.
- WTI crude was up 93 cents, or 1.4%, at $66.50 a barrel.
As part of the ongoing agreement, OPEC+ has committed to increasing its January production by 400,000 barrels per day. That was confirmed through the OPEC+ policy meeting.
OPEC+ has in the past resisted U.S. calls to boost oil production to support the global economy. The reason for this is the fear that oversupply could affect the recovery of the weak energy sector.
Ahead of concerns about Omicron, OPEC+ was weighing the impact of last week’s announcement by the United States and other major consumers on whether it should release strategic emergency reserves of crude oil to adjust energy prices.
According to the U.S. Department of Energy, the date of release of strategic reserves can still be revised if the price is sharply reduced.
However, OPEC+ said in the report that the impact of Omicron is unclear although many countries are taking lockdown measures and increasing restrictions.
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Friday, December 3, 2021