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OPEC +, when meeting Tuesday, is expected to stick to plans to increase production in February, predicting a mild, short-term impact on demand from Omicron coronavirus variants, a group of oil producers. Three sources told Reuters on Monday.
OPEC +, a group of allies led by the Organization of Petroleum Exporting Countries (OPEC) and Russia, has gradually lifted the record oil production cuts agreed in 2020 to counter the disruption of demand by pandemics. ..
The current plan is to raise the February production target by 400,000 barrels (bpd) per day on a monthly basis from mid-2021 onwards.
In a technical report seen by Reuters on Sunday, the group downplayed the impact of Omicron variants on the oil market. “The impact of … Omicron … is expected to be mild and short-lived as the world is ready to manage COVID-19 and related challenges,” said the Joint Technical Committee. The JTC) report states. “This adds to the stable economic outlook in both developed and emerging economies.”
The group has raised its goals, but production growth has not kept pace, as some members are suffering from capacity constraints. The International Energy Agency (IEA) said last month that OPEC + oil producers failed to meet their production targets of 650,000 barrels / day in November and 730,000 barrels / day in October.
https://www.oedigital.com/news/493204-opec-to-stick-with-planned-february-output-increase-sources-say OPEC + sticks to planned February output