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Oil increase in bets OPEC + suspends output increase

Friday’s oil plunged about 12% on Friday, along with other markets, fearing that the heavily mutated Omicron would cause a new blockade and hinder global growth.


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Brent crude oil futures rose 43 cents (0.6%) at 0418 GMT to $ 73.91 a barrel after rising 1% on Monday.

With oil prices rising on Tuesday and the severity of the Omicron coronavirus variant uncertain, there is a backlash from last week’s plunge against rising expectations that major producers will suspend plans to add crude oil supplies in January. Enlarged.

Brent crude oil futures rose 43 cents (0.6%) at 0418 GMT to $ 73.91 a barrel after rising 1% on Monday. Crude oil futures at West Texas Intermediate (WTI) rose 73 cents (1%) to $ 70.68 a barrel, up 2.6% on Monday.

Friday’s oil plunged about 12% on Friday, along with other markets, fearing that the heavily mutated Omicron would cause a new blockade and hinder global growth.

The World Health Organization said on Monday that Omicron poses a very high risk of infectious surges, and some countries have stepped up travel restraints. It is still unclear how serious the new variant is and whether it can resist existing vaccines.

With demand outlook under the clouds, OPEC, Russia and its allies, called OPEC +, are expected to withhold plans to add 400,000 barrels (bpd) per day in January. It is increasing.

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Demand outlook under the clouds raises expectations that OPEC + will withhold plans to add 400,000 barrels (bpd) per day in January.

“I think the group tends to suspend production growth given the Omicron variant and the release of oil reserves by major oil consumers,” said Vibeck Dahl, a commodity analyst at Commonwealth Bank. Said.

Pressure was already rising within OPEC + at the December 2 meeting after the United States and other major oil consuming countries announced emergency oil reserves last week to deal with rising prices.

OANDA analyst Edward Moya said, “OPEC and its allies have been in production following the announcement of dozens of countries limiting the release of global strategic stockpiles and round-trip travel to South Africa and neighboring countries. It’s easy to justify an outage or even a slight reduction in production. ” Note.

Still, Citi analysts expect OPEC + to continue to add barrels in January.

“Given that many OPEC + countries are unable to produce at benchmark levels because Citi has lost capacity due to lack of investment, the actual monthly addition of OPEC + is average rather than 400,000 b / d. It is calculated to be 262,000 b / d, “the bank said in a memo.

“This discrepancy means that withholding that amount makes little sense in the global supply-demand balance of oil.”

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Following bright comments from diplomats when talks on the resurgence of the nuclear deal between world powers and Iran resumed on Monday, the prospect of resuming oil exports from Iran also weighs heavily on the market.

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Oil increase in bets OPEC + suspends output increase

Source link Oil increase in bets OPEC + suspends output increase

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