OPEC+ Seen Reviving Output in Sign of Confidence for 2022 Demand

OPEC and its allies are expected to revive more oil supplies when they meet next week, underscoring the group’s optimism in the outlook for global demand.

The 23-nation alliance led by Saudi Arabia and Russia is likely to proceed with another modest monthly hike of 400,000 barrels a day as it restores production halted during the pandemic, according to a Bloomberg survey.

Several national delegates also said they expect the boost — due to take effect in February — will go ahead.

The Organization of Petroleum Exporting Countries and its partners see global demand continuing to recover this year, taking only a “mild” hit from the omicron variant.

Their confidence is being validated as busy traffic across key Asian consuming countries and dwindling crude inventories in the U.S. buoy international prices near $80 a barrel.

Fifteen of 16 analysts and traders surveyed by Bloomberg predicted the output increase will be approved when the coalition gathers online on Tuesday.

Indicators on fuel consumption suggest the barrels can be absorbed, with all but one major Asian country registering a rise in mobility month-on-month, according to data compiled by Bloomberg using Apple Inc. statistics to Dec. 27.