(Reuters) – Oil settled higher on Monday on hopes of further demand recovery in 2022, despite OPEC+ looking set to agree to another output increase and persistent concerns about how rising COVID infections might affect demand.
OPEC and its allies, or OPEC+, are expected on Tuesday to agree to the output hike.
The Omicron coronavirus variant has brought record case counts and dampened New Year festivities worldwide, with more than 4,000 flights cancelled on Sunday.
“The monthly OPEC + meeting that will be developing during the next couple of days is more likely to prove bullish than bearish since several of the OPEC members are having difficulty achieving assigned quotas,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
