According to OPEC+ expectations, the impact of the new strain of Omicron coronavirus on the oil market will be moderate and short-term against the background of the world's better adaptation to the fight against coronavirus, which will allow a gradual increase in oil production to continue.
OPEC will hold a meeting at 13:00 GMT today to discuss the appointment of a new secretary General to replace Mohammad Barkindo. An OPEC+ meeting will be held tomorrow, where the issue of further production increases in February will be considered. OPEC+ is expected to approve an increase in production by 400,000 barrels per day.
In addition, today the Joint Technical Committee (JTC) will discuss the fundamentals of the market. The JTC's main scenario assumes that in the first three quarters of 2022, oil reserves in OECD countries will remain below the 2015-2019 average, but will grow above this average in the fourth quarter. As for the prospects for oil demand, it is expected that demand will amount to 5.7 million barrels per day and 4.2 million barrels per day this year and in 2022, respectively.