OPEC + Members Made A Decision On Oil Production
The representatives of 23 countries at the OPEC+ ministerial meeting agreed to increase production by 400 thousand barrels per day in February. In this way, they kept the previous agreement in force, which was in effect even before the mass spread of the new omicron strain.
They considered three basic scenarios for the development of the market situation in 2022: negative, optimistic and basic. Despite the high level of infections, the level of hospitalizations with Covid is quite low and this does not affect the decline in demand. Therefore, they believe that it is necessary to continue to fulfill the obligations that OPEC+ took in the framework of increasing production.
Mass vaccination allows the governments of most countries not to introduce new lockdowns, and therefore the economy is gradually recovering and oil consumption is growing. At the same time, the OPEC+ countries will continue to monitor the situation and observe how the balance of supply and demand will be formed.
According to Bloomberg, the spread of the omicron strain has led to certain restrictions in the United States and the cancellation of hundreds of flights. However, at the same time, analysts point out that in the current situation, the volume of oil supplies is insufficient.