Oil rises as OPEC+ sticks to January output hike
OPEC and non-OPEC oil producers, an influential group known as OPEC+, decided on Thursday to stick to a previously agreed upon plan of hiking output by 400,000 barrels per day in January.
However the alliance said in a statement that “the meeting remains in session,” meaning they can “make immediate adjustments” should the current market conditions shift.
In what was a hotly anticipated meeting, the energy alliance convened via videoconference to determine whether to stick with its plan to release more oil into the market or to restrain supply amid fears over the omicron Covid-19 variant. Other issues on the table included a U.S.-led release of strategic reserves from crude-importing nations and Iran’s possible re-entry into oil markets.
Oil clawed back early losses to trade in the green following the announcement, which some believed was already priced into the market.
International benchmark Brent crude futures rose 1.16%, or 80 cents, to end the day at $69.67 per barrel.
U.S. West Texas Intermediate futures settled 1.4%, or 93 cents, higher at $66.50 per barrel.
Energy analysts broadly had expected OPEC+ to push ahead with its current plan to hike monthly output by 400,000 barrels per day. However, some had questioned whether the group may be tempted to take a pause to assess the market following a period of heightened price volatility.
Reference: Reuters
Thai
Eng