Philadelphia Modifiers

Main Menu

  • Drag Racing
  • Racing Car Setup
  • Rallying
  • Show Cars
  • Bankroll

Philadelphia Modifiers

Header Banner

Philadelphia Modifiers

  • Drag Racing
  • Racing Car Setup
  • Rallying
  • Show Cars
  • Bankroll
Rallying
Home›Rallying›OPEC+ appears to be sticking to policy despite rising oil prices – sources

OPEC+ appears to be sticking to policy despite rising oil prices – sources

By Brent Suarez
February 2, 2022
0
0

LONDON, Feb 1 (Reuters) – OPEC+ will likely stick to existing policies of moderate output increases on Wednesday, five sources from the producer group said even as it expects demand to rise new highs this year and oil prices are trading near their highest since 2014.

The group, which includes the Organization of the Petroleum Exporting Countries and its Russian-led allies and produces more than 40% of the world’s supply, has faced pressure from major consumers such as the United States and the India to pump more to help with the economic recovery from the pandemic.

But OPEC+ has refused to sign on to faster increases, arguing that the world is facing an energy shortage due to miscalculated energy transitions to greener fuels by consuming nations.

Join now for FREE unlimited access to Reuters.com

Register

Several OPEC members have struggled to pump even within their quotas due to underinvestment in recent years.

Five OPEC+ sources told Reuters on Tuesday they expected ministers to agree to go ahead with a planned increase of 400,000 barrels a day in March, despite high oil prices.

“The question (of faster increases) has not arisen and I doubt it has,” said an OPEC+ source, who asked if an OPEC+ expert committee meeting had discussed an increase of more than 400,000 bpd during its virtual meeting on Tuesday.

A report prepared by the committee, known as the Joint Technical Committee (JTC), and seen by Reuters on Tuesday kept the forecast for global oil demand growth unchanged for 2022 at 4.2 million bpd.

He said he expected demand to reach pre-pandemic levels in the second half of the year. Oil demand peaked at just over 100 million bpd in 2019.

The report still indicates that the world would face a crude surplus in 2022 reaching 1.3 million bpd, slightly less than its previous forecast of 1.4 million bpd.

The report, however, notes that a number of risks continue to loom in the oil market, including “significant uncertainties” associated with the potential impact of the Omicron variant of the coronavirus, persistent supply chain bottlenecks and central bank policy to counter inflation.

The JTC also flagged other risks to the oil market recovery, citing volatility in commodity markets, constraints on oil production capacity due to underinvestment, the challenge of high levels of sovereign debt in many many regions and geopolitical risks.

Brent prices were around $89 a barrel on Tuesday, not too far off the seven-year high of $91.70 hit last week, mostly on geopolitical tensions.

Goldman Sachs said in a note that there was a chance for a faster OPEC+ ramp-up given the pace of the recent market rally.

(This story edits to correct typos in paragraphs 2 and 3.)

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Ahmad Ghaddar and Olesya Astakhova, additional reporting by Alex Lawler and Maha El Dahan; written by Dmitry Zhdannikov; Editing by David Goodman and Marguerita Choy

Our standards: The Thomson Reuters Trust Principles.

Related posts:

  1. Thomas Tuchel rallies Chelsea FC ahead of Champions League semi-final: ‘Don’t lower the level’
  2. Invest in Pulitzer Prize-focused journalism as we continue our fight for the truth
  3. GE earnings: Stocks rebounded as earnings estimates fell. Will investors or analysts be right this time?
  4. Proofpoint, Inc. (NASDAQ: PFPT) – Why ProofPoint’s stock is rallying today
Tagsunited states

Recent Posts

  • Willowbank Raceway – General News: 400 THUNDER PRO SLAMMER STARS FEATURED IN NEW WINTERNATIONALS $40,000 DOUBLE HEADER SHOOTOUT
  • How to change brake pads and rotors
  • Boris Johnson’s passionate Rangers rallying call in full as PM thanks Ibrox club for ‘flying the flag’
  • Lawsuit accuses Houston-area dealership of failing to replace recalled airbag
  • Ranks rushes to Pearce’s aid after he leaves the field — The Capital Sports Report

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • October 2020
  • July 2020
  • August 2019
  • April 2019
  • February 2019

Categories

  • Bankroll
  • Drag Racing
  • Racing Car Setup
  • Rallying
  • Show Cars
  • Terms and Conditions
  • Privacy Policy