OPEC and allied oil-producing countries are expected to press ahead Thursday with restoring cutbacks in output made during the depths of the coronavirus pandemic as hopes grow that travel and demand for fuel will hold up despite the rapid spread of the omicron variant.Analysts say the group is likely to add 400,000 barrels of oil per day in February, sticking with the road map it has followed since August.
The 23-member OPEC+ alliance, led by oil cartel member Saudi Arabia and non-member Russia, meets online every month to decide production levels for the month ahead.U.S. oil prices plunged as low as USD 65 per barrel and stocks slid in late November after the first reports about the ultra-contagious omicron variant.But markets have since calmed down amid evidence that the variant — while more likely to infect people — may cause less severe disease and as data on vehicle traffic and aviation activity shows that, so far, omicron is not sharply reducing demand for fuel, said Bjornar Tonhaugen, head of oil markets at Rystad Energy.
