OPEC+ seemingly commits suicide
OPEC+ raised the supplies amid oil glut and uncertainity
Against all expectations, OPEC + decided to increase oil production by 400,000 barrels in January.
And that happens in a situation where it is expected, by OPEC and the IEA, that an oversupply will be created, according to the market expert.
With this, OPEC+ meets the wishes of oil-importing countries such as India, China and the US and has thus avoided a larger geopolitical conflict.
The result was that the price of oil fell further.
Much will depend on expectations of oil demand in the coming period. This will be determined by the spread of the omicron variant, and the effect of the existing vaccines against it.
Moreover, OPEC+ has the room to adjust production levels earlier than the next meeting on 4 January, if market conditions so require. A barrel of oil will be about one percent cheaper on Thursday afternoon.