Without much surprise, the Organisation of Petroleum Exporting Countries (OPEC) and its alliance known as OPEC+ has decided to stick to its plan to add 400,000 barrels of oil per day (bopd) next month. The group has raised its output target each month since August 2021 by 400,000 bopd.
The decision to stick to the production adjustment plan follows OPEC’s expectations that the Omicron variant of the coronavirus will have a short-lived impact on global energy demand. Under such monthly adjustments, OPEC is steadily unwinding its record production cuts of 10 million bopd that were imposed in 2020 to save oil prices.
The next meeting of OPEC+ is scheduled to be held on February 2, when the group is expected to decide production levels for March.