OPEC+ agree to maintain oil output increase schedule
The OPEC+ coalition has agreed to maintain its existing strategy of increasing collective oil production by 400K b/d in January, according to Argus. This decision comes despite market concerns surrounding upcoming strategic petroleum reserve releases from some major oil-importing countries, as well as the potential for oil demand to be hit by the Omicron COVID-19 variant. Under the group’s current agreement collective oil production will rise by 400K b/d each month from August until April 2022, before then rising by 432K b/d monthly from May 2022 until the original cut has been restored. OPEC+ have also now introduced a six-month deadline extension to its compensation scheme in which countries that have produced above their designated targets will have to make additional cuts.