OPEC and its allies will decide on Thursday whether to pump more oil into the market or limit supplies, amid lower oil prices, US moves to pump more crude oil reserves, and concerns about the mutated Omicron strain of the Corona virus. they have thrown markets into chaos.
OPEC and its allies are in contrast with the United States, which has asked the group to increase its production to support the global economy, but the producing countries say they do not want to hinder a weak recovery in the energy sector with a new oversupply.
“In these turbulent times, it is essential that we and non-OPEC countries … remain cautious in our approach and take the lead in compliance with the needs of market conditions “, Diamantino Pedro Azevedo, Minister of Energy of Angola, who chairs the OPEC session in course, he said in opening speech at a meeting of the organization. ”.
Three OPEC sources said the organization’s meeting of ministers ended Wednesday with no recommendations on production policy.
The OPEC + alliance, which includes Russia and other producing countries, is likely to make a decision on production policy on Thursday.
Russia and Saudi Arabia, OPEC + ‘s two largest producers, said ahead of this week’s meetings that the group did not need to take a gut reaction to adjust production policy. Iraq said OPEC + is expected to extend the current production policy in the short term.
In trading on Thursday, Brent crude oil futures were up 48 cents, or 0.7%, to $ 69.35 a barrel at 01:40 GMT, after falling 0.5% in the previous session.
US West Texas Intermediate Crude Oil futures were no less fortunate than the previous one, as they rose as much as 48 cents, or 0.7%, to $ 66.05 a barrel, after falling 0.9% yesterday, Wednesday. .
According to the internal research unit of the Organization of Petroleum Exporting Countries, in the first quarter of quest’year a surplus in global oil markets of 3 million barrels per day is projected, which could reach 4.8 million barrels per day under the worst-case scenario of oil demand developments.
For his part, Iraqi Oil Minister Ihsan Abdul-Jabbar said on Wednesday that the recent drop in crude oil prices was due to fears of a technical recommendation from the World Health Organization. in about the new mutant of the Corona virus “Omicron”.
He added that the OPEC countries and their allies will study during the next meeting “the variables of supply and demand and the expectations of a large number of OPEC observers and officials”.
And the Iraqi oil minister suggested: “It is likely that an agreement will be reached to extend current production policies for the next short period, and that OPEC and its allies aim to achieve a state of stability and equilibrium in the reliable and sustainable energy. market of industrialized countries and crude oil exporting countries “.
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