OPEC and allies agree to modest oil output boost

0
74
OPEC and allies agree to modest oil output boost

Jan 4, 2022: OPEC and its allies on Tuesday decided to maintain their policy of a modest increase in oil production next month, as the rapidly expanding Omicron variant has so far not affected demand much.

The OPEC + group, including top producers Saudi Arabia and Russia, has resisted US pressure to open taps in response to rising energy prices, which have fueled rising global inflation. The 13 members of the Organization of the Petroleum Exporting Countries (OPEC) and their 10 allies cut production sharply in 2020 as the pandemic affected demand.

Last year they decided to step it up again gradually as prices recovered, while reviewing the situation every month.

After a short videoconference meeting on Tuesday, the group said it had agreed to raise output by 400,000 barrels per day in February, the same level as in previous months.

The price of Brent, Europe’s benchmark oil contract, hit $79.76 at 1325 GMT on Tuesday — 15 percent higher than before the group’s December 2 meeting.

OPEC analysts told the group on Monday that Omicron would have a moderate impact on demand and the rise in price is expected to continue in 2022.

While the new Covid variant is spreading like wildfire around the world, it appears to be far less severe than initially feared, raising hopes that the pandemic could be overcome and life return to a little more normality.

While OPEC+ countries have been gradually increasing output again since last year, analysts note some countries, such as Nigeria and Angola, have been struggling to lift production. Another heavyweight, Iran, has seen its exports limited by US sanctions.

Stay tuned to BaaghiTV for latest news and Updates!

Taliban spokesperson: Durand Line incidents to be resolved through diplomatic channels

 

 

Leave a reply