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The “OPEC +” grouping of oil-producing countries began its meetings today, Wednesday, to discuss increasing oil production, at a time when expectations are increasing for the grouping’s decision to suspend plans to increase production due to the risks of the new mutated strain of the emerging Corona virus, Omicron.
And the Bloomberg news agency indicated the commitment of the energy ministers in the gathering, which includes the Organization of the Petroleum Exporting Countries “OPEC” and its allies from the oil countries outside the organization, led by Russia, to remain silent about their intentions, while the introductory round of talks today focused on administrative aspects, such as the appointment of the Secretary-General. The new OPEC.
Experts from the gathering countries are currently studying expectations regarding the emergence of a surplus in the global oil markets during the first quarter of next year.
At the beginning of last month, the OPEC Plus countries, led by Saudi Arabia and Russia, were subjected to strong pressure from oil-consuming countries, especially the United States, to pump larger quantities of oil into the markets to curb the rise in prices. But at the end of the month, crude prices fell after the spread of the Omicron strain and the decision of many countries to impose restrictions on movement again, which raised doubts about the recovery of global energy demand.
closing procedures
Angolan Minister of Mineral Resources and Oil Diamantito Azvideo said at the beginning of today’s session: The sudden emergence of a new strain, which may be more dangerous than the Corona virus, came along with the new closure measures. “In these times of uncertainty, it will be imperative for the OPEC+ grouping to maintain a prudent approach and be prepared to act proactively according to market conditions.”
According to the internal research unit of OPEC, a surplus is expected in the global oil markets during the first quarter of this year by 3 million barrels per day, and it could reach 4.8 million barrels per day according to the worst-case scenario of oil demand developments.
For his part, Iraqi Oil Minister Ihsan Abdul-Jabbar said today, Wednesday, that the recent decline in crude oil prices was due to fears of a technical recommendation by the World Health Organization regarding the new Corona virus mutator “Omicron”.
And the official Iraqi News Agency “INA” quoted Abdul-Jabbar as saying that “Iraq’s position regarding continuing to pump the increase decided by the oil-exporting countries “OPEC” and its allies, up to 400,000 barrels, or stopping it is related to the decisions of the next OPEC meeting.”
He added that the OPEC countries and their allies will study, during the next meeting, “the variables in supply and demand, and the expectations of a large number of observers and officials in OPEC.”
The Iraqi Oil Minister suggested that “the agreement to extend the current production policies will be reached for the next short period, and that the Organization of Petroleum Exporting Countries and its allies aim to reach a state of stability and balance in the energy market that is reliable and sustainable for industrialized and crude oil-exporting countries.”
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