Middle East

OPEC expects to be tougher in the first quarter as it considers increased production

OPEC lowered its global oil market surplus estimates this quarter, the day before the Group and its allies considered another increase in production.

The findings may encourage a modest increase in production, which the delegation says is expected when OPEC + coalitions from 23 countries meet on Tuesday. An alliance led by Saudi Arabia and Russia is gradually recovering production that was stopped during the pandemic in installments of 400,000 barrels a day.

OPEC is seeing a surplus of 1.4 million barrels per day in the first three months of 2022, according to an internal survey reviewed by the Group and its allies on Monday, from an estimate a month ago. Is also about 25 percent less. The main impetus for change was the weak outlook for supply from coalition rivals.

The overall picture of 2022 has also become slightly stronger as a result of a stronger demand outlook, with an average annual surplus of 1.4 million barrels per day from 1.7 million barrels seen by the Commission last month. The report, edited by OPEC’s internal research department in Vienna, is being evaluated by the Alliance’s Joint Technical Committee on behalf of the Minister.

Oil futures rose as Libya’s production was disrupted by pipeline damage. West Texas Intermediate crude rose 0.7% to $ 75.76 a barrel at 7:16 am in New York.

OPEC reiterated that it is seeing the “mild and short-term” effects of Omicron variants because “the world has better equipment to manage Covid-19 and related challenges.” rice field.

The report also shows that OPEC + may face a more serious surplus in late 2022. The group has stated several times that it has the option of suspending or canceling planned supply increases as needed.

https://gulfbusiness.com/opec-sees-tighter-first-quarter-as-it-considers-output-hike/ OPEC expects to be tougher in the first quarter as it considers increased production

Back to top button