According to a document cited by Reuters, OPEC + it expects global oil supply surpluses to widen to 2 million barrels per day (BPD) in January, to 3.4 million barrels per day in February and then to 3.8 million barrels per day in March. OPEC + reportedly sees the impact that Omicron-related travel restrictions are having on jet fuel demand in Europe and Africa. Demand for fuel for mobility and transportation within Europe may also be affected by the new Covid-19 variant, reportedly.
Market reaction
WTI declined from session highs at $ 69.50 in recent trade, but is clinging to daily gains of around $ 1.50. The OPEC + comment could heighten concerns about the outlook for global oil demand, but it also raises the possibility that OPEC + will be proactive to ensure that projected supply surpluses are not too persistent / weigh too heavily on prices. long-term.
OPEC meets on Wednesday at 13:00 GMT, while OPEC + is scheduled to meet at 13:00 GMT on Thursday. Analysts expect the cartel to announce a halt to the recent 400,000 barrels per day run on monthly production hikes.
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