Oil will rise as OPEC + may suspend additional supplies.This can be a headline

Oil prices rose Thursday in anticipation that OPEC + could suspend additional supplies amid growing concerns that the epidemic of the Omicron coronavirus variant could weigh on the global economy and fuel demand. It rose and reversed the loss of the previous day.

West Texas Intermediate (WTI) crude oil futures fell 0.9% on Wednesday and then rose 48 cents (0.7%) to $ 66.05 a barrel by 0140 GMT.
Brent crude oil futures rose 48 cents (0.7%) to $ 69.35, down 0.5% in the previous session.

“Some investors have decided that OPEC + will maintain its current supply levels in January to mitigate demand-based damage from Omicron spreads,” said Toshitaka Tazawa, an analyst at Fujitomi Securities. Oil prices have risen because of expectations. “

OPEC +, the Organization of Petroleum Exporting Countries and its allies, may decide on Thursday whether to release more oil to the market or limit its supply as previously planned.
Since August, the Group is adding 400,000 barrels per day (bpd) of monthly production to its global supply as it gradually reduces the record cuts agreed in 2020.

However, the new variants complicate the decision-making process, and some observers speculate that OPEC + may suspend these additions in January as it slows supply growth.

Omicron is rapidly becoming a dominant subspecies of the coronavirus in South Africa, less than four weeks after it was first detected in South Africa. On Wednesday, the United States became the latest country to identify the Omicron incident within its borders.

Global oil prices have fallen by more than $ 10 a barrel since last Thursday, when Omicron news shook investors.

US Deputy Energy Secretary David Turk said President Joe Biden’s administration could coordinate the planned release of strategic petroleum reserves if global energy prices fell sharply.

Thursday’s rise in the oil market was limited by weekly U.S. inventory data showing that U.S. crude oil inventories were lower than last week’s expectations, but gasoline and distillate inventories are expected as demand weakened. Much more than.

According to the Energy Information Agency (EIA), crude oil inventories fell by 910,000 barrels for the week to November 26, but were compared to analysts’ estimates that a Reuters poll showed a drop of 1.2 million barrels.

Oil will rise as OPEC + may suspend additional supplies.This can be a headline

Source link Oil will rise as OPEC + may suspend additional supplies.This can be a headline

Related Articles

Back to top button