OPEC and its allies are expected to revive more oil supplies when they meet next week, underscoring the group’s optimism in the outlook for global demand.
The 23-nation alliance led by Saudi Arabia and Russia is likely to proceed with another modest monthly hike of 400,000 barrels a day as it restores production halted during the pandemic, according to a Bloomberg survey. Several national delegates also said they expect the boost -- due to take effect in February -- will go ahead.
The Organization of Petroleum Exporting Countries and its partners see global demand continuing to recover this year, taking only a “mild” hit from the omicron variant. Their confidence is being validated as busy traffic across key Asian consuming countries and dwindling crude inventories in the U.S. buoy international prices near $80 a barrel.
“The market can take the extra oil, as long as omicron or a macro downturn don’t crush demand again,” said Bob McNally, president of consultant Rapidan Energy Group and a former White House official.
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