Oil is back in a bear market, but as things currently stand one of OPEC’s largest producers is set to increase output in January.
With a few days to go before the Organization of Petroleum Exporting Countries and its allies meet to discuss policy, traders are focused on whether Saudi Arabia will extend its voluntary production cut of 1 million barrels a day into the new year. While that decision remains uncertain, the kingdom’s Gulf neighbor already has an agreement in place allowing it to pump more crude.
The United Arab Emirates will increase its output target to 3.075 million barrels a day in January, or about 135,000 barrels a day more than it pumped last month. Abu Dhabi secured the concession at the group’s last meeting in June, when it argued that longstanding production limits failed to recognize capacity additions it has made in recent years.
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