Oil prices steady as traders await key decision by Opec and allies

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Oil prices fluctuated on Thursday as traders bravely confronted a decision from Opec and its allies on whether to continue increasing oil production in January in the face of the epidemic of the Omicron coronavirus strain.

Brent crude fell below $ 69 on Wednesday, then temporarily surpassed $ 70 a barrel in London’s morning trading and fell from a high of over $ 85 in October.

OPEC +, which includes major producers such as Saudi Arabia and Russia, 400,000 barrels a day Monthly from August to gradually replace the supply cut at the start of the pandemic. Until the discovery of the Omicron variant last week, the group was being pressured by the U.S. and other large consumers to accelerate the process with warnings of a growing shortage of supply and demand. ..

At the opening session, Angola’s Minister of Mineral Resources and Petroleum, Diamantino Azebed, said, “The sudden emergence of potentially newer and more dangerous variants reverses the dramatic surge in infections, especially in the unvaccinated population. That happens in addition to the new lockdown in parts of Europe aimed at. ” Of the Opec meeting on Wednesday. “In these uncertain times, the following are essential: [Opec and its allies] Stay cautious about our approach and be prepared to act proactively in the context of the market. “

Concerns and social restrictions that the new variant could lead to another trip may have changed OPEC’s calculations, according to some analysts. UBS’s Jon Rigby said it is “more likely” that OPEC’s production increase scheduled for January 2022 will not progress.

In November, the U.S. in an attempt to lower gasoline prices Largest release ever From strategic petroleum reserves (about 50 million barrels), a move in collaboration with other major oil consumers such as the United Kingdom, India, South Korea and Japan.

This measure is largely symbolic, and analysts predict that it will have little long-term impact on prices, but this release is also expected to influence OPEC’s decisions. Angola’s Azevedo said Wednesday that the release of reserves strengthened the need for “hard-working market surveillance to avoid a return to market imbalances.”

Opec analysts predict supply will outpace demand in the first quarter of 2022, but concerns remain about inflation and a fragile pandemic recovery in Washington and elsewhere.

“This week’s OPEC + Ministerial Conference is becoming one of the most important since the pandemic’s recovery demand began,” said Peter McNally of global research firm Third Bridge.

Oil prices steady as traders await key decision by Opec and allies Source link Oil prices steady as traders await key decision by Opec and allies

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