OPEC and its allies (OPEC +) decided to further boost their production at their meeting today, despite forecasts for tighter conditions in world markets in the coming months.
OPEC + gave the green light for another production increase of 400,000 barrels per day in February, four sources told Reuters.
OPEC + has decided to gradually return the quantities of oil it took out of the system during the global recession due to the pandemic, when demand collapsed.
With its monthly increases, OPEC + has led back to the market about two thirds of the production that stopped in 2020.
OPEC + analysts, however, downgraded their estimates for demand in the first quarter, estimating that demand growth will be weaker than originally estimated. In particular, the OPEC + Joint Technical Committee sees a surplus of 1.4 million barrels per day in the first three months of 2022, a decrease of about 25% compared to the previous estimate a month ago, according to an analysis cited by Bloomberg.
At the same time, the Commission estimates that the impact of the micron mutation will be mild and short-lived, as the world is now “better equipped to deal with Covid-19 and related challenges,” he said.
In that climate, February delivery crude added $ 1.10, or 1.5 percent, to $ 77.18 a barrel on the New York Mercantile Exchange.
Brent for March delivery gained $ 1.09, or 1.4%, to $ 80.07 a barrel on ICE Futures Europe.
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