OPEC+ announced on Tuesday that it is sticking with its plan to gradually boost oil output next month, as the group brushed off concerns about Omicron’s impact on global crude demand.
The 23-nation member group encompassing Saudi Arabia-led OPEC and the cartel’s allies led by Russia agreed at the end of its meeting on Tuesday to adhere to its previous decision to increase oil production by 400,000 barrels a day in February.
Last August, OPEC+ started incrementally opening the taps each month to roll back severe production cuts introduced during the opening months of the pandemic when oil prices crashed.
As economies cast-off COVID restrictions last year, crude prices revived sharply, compelling United States President Joe Biden to urge OPEC+ to accelerate its production boost to cool soaring energy prices.
But the cartel and its allies resisted Biden’s calls – fuelling a rally that saw global benchmark Brent crude gain roughly 50 per cent last year and open 2022 on a strong note.
As economies cast-off COVID restrictions last year, crude prices revived sharply, compelling United States President Joe Biden to urge OPEC+ to accelerate its production boost to cool soaring energy prices.
But the cartel and its allies resisted Biden’s calls – fuelling a rally that saw global benchmark Brent crude gain roughly 50 per cent last year and open 2022 on a strong note.
Brent is currently trading near $80 a barrel, while US benchmark West Texas Intermediate crude is trading near $77 a barrel.
If OPEC+ stays on its current production trajectory, its 2020 cuts should be erased by September.
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