OPEC Expected To Maintain Course To Modestly Open Taps
Umer Jamshaid Published January 04, 2022 | 08:00 AM
London, Jan 4 (UrduPoint / Pakistan Point News - 4th Jan, 2022 ) :Major oil-producing countries are expected to maintain on Tuesday their course of modestly boosting output as the rapidly spreading Omicron variant has so far not heavily hit demand.
The so-called OPEC+ grouping, including top producers Saudi Arabia and Russia, has withstood pressure to more widely open the taps though high energy prices are fuelling a surge in inflation across the world.
The 13 members of the Organization of the Petroleum Exporting Countries (OPEC) and their 10 allies drastically slashed output in 2020 as the pandemic wreaked havoc with demand.
Last year they decided to step it up again gradually as prices recovered, while reviewing the situation every month.
Analysts say they expect the group to step up production by 400,000 barrels per day in February, as they have done in past months.
"Since the last OPEC+ meeting (in early December), oil prices have recovered considerably, suggesting that also market participants seem to be less concerned about the Omicron variant weighing on oil demand," UBS energy strategist Giovanni Staunovo told AFP via email.
In remarks on Monday, OPEC Secretary General Mohammed Barkindo emphasised the need to "remain highly nimble and adaptable to the constantly changing situation".
He said the group's "flexible approach has helped provide an added sense of stability, reassurance and continuity to the market and investors".