Investing.com – In a fast-paced turn of events and the follow-up to the fallout from the novel coronavirus outbreak, the Energy Minister spoke about the expected date of OPEC+ meetings this week.
A short while ago, the Saudi Energy Minister said, it was decided to postpone the technical meeting of the OPEC + group to Wednesday, and the ministerial committee meeting will be held on Thursday.
Prince Abdulaziz bin Salman said that this postponement of APC + members gave more time to assess the impact of Omicron on oil demand and prices.
A policy decision by the bloc is likely to be announced on whether to adjust its plan to increase production by 400,000 barrels per day in January and beyond.
On the impact of the “Omicron” virus on oil demand, the Minister of Energy said: “We are now at the beginning of the matter, and as the head of the OPEC Plus group, and in consultation with the co-chair, we have decided to move the technical meetings to Wednesday evening and the ministerial committee meeting to Thursday to gain time to review matters.”
The Minister of Energy added: “The phenomena and evidence now, according to the World Health Organization, are exaggerations, as mentioned.”
The Saudi Energy Minister said: “I think that the decision that was taken is a possible decision for us to study the issue in a better way and with knowledge, albeit limited, but it would be better than meeting today and tomorrow without making use of time.”
oil now
Oil gains expanded during those moments after sharp losses last Friday that exceeded 11% for the benchmark Brent crude and the US NYMEX crude.
The US NYMEX crude increased during those moments by nearly 7%, rising to levels of 73 per barrel, with gains of about $5 per barrel.
While the benchmark Brent crude rose by about 6%, more than 4 dollars per barrel, to levels near 76 dollars per barrel.
Russian statements
Russian Deputy Prime Minister Alexander Novak said during the “OPEC +” conference that there is no need for emergency measures in the oil market.
Novak added that the “OPEC +” partners did not request a renegotiation of the production agreement in response to the outbreak of the “Omicron” variant of the “Covid-19” virus.
And it turned higher, on Monday, with expectations that “OPEC +” may stop increasing production in response to the outbreak of the new variable from Corona.
Expectations
“There have been corrective buying on the grounds that the oil market was oversold last week and speculation that OPEC+ may take action against Omicron, which could cut production,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
“All eyes will be focused on how Omicron will affect the global economy, fuel demand, OPEC+ action and this week’s Iran nuclear talks,” he added.
Oil markets were eagerly awaiting the OPEC + meetings this week, especially after the US decision to release 50 million barrels of stocks, coinciding with a number of allies such as China, India, South Korea, the United Kingdom and Japan announcing the same.
emergency announcement
The Organization of the Petroleum Exporting Countries announced in an urgent statement that the expected meeting of the Technical Committee has been postponed to Thursday, instead of next Tuesday, to study the path of the oil market.
Some delegations said that the organization will postpone two technical meetings scheduled for this week to give the committees more time to assess the impact of the spread of the new Covid strain (Omicron).
She added that the Organization of the Petroleum Exporting Countries (OPEC) will postpone the meeting of the Joint Technical Committee for Wednesday, while the Joint Ministerial Monitoring Committee, which includes representatives of the broader OPEC + of oil producers, will meet on Thursday.
Oil markets were eagerly awaiting the OPEC + meetings, after the US decision to release 50 million barrels of oil stocks to affect oil prices, according to Washington’s vision.
It is noteworthy that after an emergency meeting yesterday, the 164 members of the World Trade Organization agreed to postpone the Twelfth Ministerial Conference.
And that is after the new strain prompted many governments to impose strict travel restrictions, which will prevent many ministers from going to Geneva, according to the organization.
Omicron
The World Health Organization said that the Omicron mutant is likely to spread globally, which poses a “very high” global risk, as the increase in Corona cases may have “serious consequences” in some regions.
In a recommendation, the United Nations organization urged member states to speed up vaccination of priority groups and “ensure that plans are in place to mitigate crises” to maintain basic health services.
“Omicron has an unprecedented number of increased mutations, some of which are concerning as to the potential impact on the course of the pandemic,” WHO said, adding, “The overall global risk assessment for Omicron is very high.”
The organization added that more research is needed to gain a better understanding of the possibility of Omicron overpowering vaccines and post-infection acquired immunity, adding that more data is expected in the coming weeks.
“It is expected that people vaccinated with corona vaccines will be infected with the new mutation, albeit in a limited proportion,” she said.
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