The OPEC, Russia, and other oil producers agreed on Tuesday to gradually increase monthly output from February, but there are growing doubts about whether they can deliver on the additional barrels.
The decision to increase production by 400,000 barrels a day was released by OPEC.
OPEC+ producers agreed to stick with their planned increase for February based on indications that Omicron would have only a mild impact on demand.
Four OPEC+ sources told Reuters that the group agreed in their meeting on Tuesday to add 400,000 barrels per day (bpd) to output in February because it expects the Omicron variant to have a short-lived impact on demand.
“Though Omicron cases continue to climb in key geographies, the absence of widespread lockdown restrictions will likely keep near-term demand concerns in check,” RBC analysts said in a note.
Britain’s vaccine minister said people being hospitalised with COVID-19 in the United Kingdom were generally showing less severe symptoms than previously.
Brent crude was up $1.50, or almost 2%, at $80.48 a barrel by 1450 GMT. –Reuters
