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OPEC+ Agrees Oil Output Hike From February

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06 January 2022

OPEC+ agreed on Tuesday to stick to its planned increase in oil output for February because it expects the Omicron coronavirus variant to have a mild impact on global energy demand, the Reuters news agency reports.

The group, which includes OPEC countries and other top oil producers like Russia, has raised its output target each month since August by 400,000 barrels per day (bpd).

The energy alliance is in the process of unwinding record supply cuts of roughly 10 million bpd, which were put in place in April 2020 to help the energy market after the coronavirus pandemic cratered demand for crude.

Global manufacturing activity remained strong in December, suggesting Omicron's impact on output had been subdued, according to the report.

Brent crude rose 50% last year and has rallied so far in 2022. It was trading above $80 on Tuesday following the OPEC+ decision.

OPEC announced on Monday that it had decided to appoint Haitham Al-Ghais of Kuwait as its secretary-general from August.