All eyes are on the OPEC + meetings the commitment rate for the production agreement rises to 120%

A survey conducted by “Reuters” and released today Tuesday showed that the Organization of Petroleum Exporting Countries (OPEC) pumped 27.74 million barrels per day in November, an increase of 220,000 barrels per day from the previous month, but less than the increase of 254,000 allowed under the supply contract.

These numbers arrive in one moment in to which the world is eagerly awaiting the steps expected by the oil group which will deal with balancing the market and addressing the pressures of the pandemic and the various related repercussions.

The survey also showed that OPEC adherence to production cut commitments by the OPEC + group rose to 120% in November from 118% the previous month.

“OPEC +” member countries (OPEC countries meet) and its allies outside the group) on Thursday to reach a complex formula linked to the level of its production In early 2022, the impact of a challenge from the US president on the supply level and the new Corona virus mutant on the demand level, according to “AFP”.

“Certainly one of the most important meetings” of the Organization of Petroleum Exporting Countries (OPEC) and its allies in “OPEC +” (Plus) “since the beginning of the recovery in demand” for oil after the repercussions of the catastrophic pandemic, said Peter McNally, analyst at Third Bridge.

The meeting will be held in video technology Thursday at 13:00 GMT in Vienna, to be preceded on Wednesday by a first meeting that brings together only the thirteen OPEC countries.

McNally told AFP that two major events have been recorded in the past seven days: “the coordinated release of strategic reserves. in several consumer countries and the sudden appearance of the mutant Omicron “.

oil plant
oil plant

After putting a lot of pressure on the cartel to increase production, the United States, along with China, India and Japan, have announced the use of strategic reserves to calm the huge increase in crude oil prices, which is hampering economic recovery.

This “big initiative” includes what US President Joe Biden described, 65 to 80 million barrels in total, according to analysts’ estimates, of which 50 million in the United States alone.

However, this step did not achieve its goal, as prices went up in followed while the new mutant in exchange ensured the reduction of prices.

The monitoring of this new mutagen, which the World Health Organization has called “Omicron”, led to a great interaction in the markets on Friday, with crude oil prices. in 10% drop for the first time since the April 2020 sessions.

Commerzbank’s Karsten Fritsch said this development “leads one to believe that Opec + will not increase its production” in an attempt to keep prices at the current level in the $ 70 / barrel range “at least for now”.

That decision is in in line with the conservative approach adopted as OPEC + has gradually increased production since May 2021.

Saudi Energy Minister Abdulaziz bin Salman said at the end of October that “the crisis is not over yet. We must be careful not to take it for granted”.

The members of the “OPEC +” alliance are expected to increase their monthly production by only 400,000 barrels per day, while the leeway available to them is ten times greater in according to their reference levels.

Russian Deputy Prime Minister Alexander Novak, in charge of oil affairs, was quoted by Russian news agencies as saying that “any hasty decision should be avoided”.

A technical meeting that usually precedes the summit has been postponed to Thursday “for more information on the current situation,” according to Novak.

Read More About: Business News

Follow AsumeTech on

More From Category

More Stories Today

Leave a Reply