Price rises with OPEC+ ready to act if demand becomes weak

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Oil prices rose on Friday (3rd) after the OPEC+ group said it could revise its policy of increasing production in the short term if oil demand falls due to an increasing number of lockdowns, while Brent was underway for a sixth week of fall.

Brent oil futures rose $1.91, or 2.8%, to $71.62 a barrel at around 9:10 am EDT. West Texas Intermediate (WTI) oil futures advanced $1.83, or 2.78%, to 68.34 a barrel.

The Organization of Petroleum Exporting Countries, Russia and allies, called OPEC+, surprised the market on Thursday by maintaining plans to add 400,000 barrels per day (bpd) in January.

“His decision to continue increasing monthly oil production is a vote of confidence in the near-term demand outlook. Rather, OPEC+ is betting that the new Ômicron variant will not have a lasting impact on oil demand,” PVM said in a note.

But producers have left the door open to change policy quickly if demand suffers from measures to curb the spread of the coronavirus variant. They said they could meet again before the next meeting scheduled for January 4th.

For the week, Brent was about to fall about 1.7%, retreating for the sixth straight week for the first time since November 2018. WTI was close to week-on stability after five weekly declines.

Reference: CNN Brasil

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