OPEC+ Longest Open Meeting, Concluded, with no Policy Change

Prince-minister of Energy Abdulaziz bin Salman confirmed the ending of the longest meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group dubbed as OPEC +.

In turn, Russian Deputy Prime Minister Alexander Novak expressed belief that “there is a state of uncertainty about Omicron, but it does not affect the demand for oil, that much.”

“OPEC+” agreed to keep the oil production policy unchanged, by increasing production by 400,000 barrels per day, in February, according to a set agreement.

OPEC+ resolution at the conclusion of its meeting included an increase in production by 400,000 barrels per day for the month of February, according to the agreement, the extension of the compensation period until next June, and the end of the twenty-third meeting, which has been open since last December 2, concerned with following up the impact of Omicron on oil, and the date of the next meeting was decided to be held on 2 February 2022.

It was expected that major producers would adhere to plans to increase supplies by the agreed amount of 400,000 barrels per month, at a time when the rise in Covid-19 infections did not lead to shutdowns in the largest fuel consuming countries, so far.

A technical report issued on Sunday showed that OPEC + expects that the impact of the Omicron variant on the oil market will be mild and temporary, thus, keeping the door open to another increase in production.

The impact of the new Omicron variant is expected to be mild and short-lived, as the world becomes better equipped to manage COVID-19 and related challenges, media reports stated.

In addition, the reports were supported by the stable economic outlook, across advanced and emerging economies.