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OPEC + Agreed To Increase Oil Production Despite Falling Oil Prices And Omicron

OPEC + Agreed To Increase Oil Production Despite Falling Oil Prices And Omicron 01.12.2021


OPEC + Agreed To Increase Oil Production Despite Falling Oil Prices And Omicron

OPEC + ministers agreed to increase oil production by 400 thousand barrels per day in January despite the fall in Brent oil prices to USD 67.3 due to the news of the possibility of a drop in energy demand because of omicron coronavirus strain. On November 26, after the first news about the African strain of omicron, the price of Brent crude oil fell by 12%. OPEC+ countries assume that the market is balanced, demand is gradually recovering.

The ministers of the OPEC + countries several times changed the initial concept of the merger's actions to smoothly increase the production of raw materials, although the largest oil consumers - China, Japan, India and the United States - asked OPEC + to increase production even more in order to bring down market prices. The United States, China, India, the United Kingdom and Japan have recently announced plans to release about 70 million barrels of oil from strategic reserves, but have not yet implemented this plan. The OPEC + technical committee predicted a surplus in the oil market in 2022. The authors of the report of the technical committee expect that it will be 1.7 million barrels per day in 2022, while in 2021 the market experienced a deficit of 1.2 million barrels per day.



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