OPEC+ decision to keep taps open augurs well for fuel consumers

NEW DELHI: Relief may be in sight for fuel consumers in India as the OPEC+ grouping on Thursday decided to continue raising production by 400,000 barrels per day in January in spite of mounting nervousness over Omicron – the new Covid-19 variant – disrupting demand recovery and building up inventory.
But the grouping left open the option of adjusting production if there is a shift in the current market situation – an allusion to unusual rise in inventories due to Omicron’s downward pressure on demand and/or a US-led co-ordinated release of emergency stockpiles by the world’s top five consumers, including India.
The OPEC announcement, made after a meeting of the energy ministers of member countries, raises hopes of a further reduction in crude prices, or at least stability in the global market.