Bloomberg: OPEC+ agreed to continue a slight increase in production in February as crude oil supplies could tighten

With the outlook for the global oil market improving and demand weathering the brunt of a new wave of the pandemic, OPEC+ agreed to restore more capacity. According to the statement, OPEC+ approved a 400,000 bpd increase in February at its meeting on Tuesday. After analysts predicted that the oversupply level in the quarter would be lower than previously expected, OPEC+ decided to maintain its existing plans to gradually increase production. Global fuel consumption continues to recover from the 2020 slump. Increased transportation and plant activity in major Asian consumers, as well as lower U.S. oil inventories, brought crude oil prices in the London market closer to $80 per barrel. Russian Deputy Prime Minister Alexander Lunovak said in an interview that "surveillance and analysis show that despite the high number of COVID-19 infection cases, the hospitalization rate is quite low and does not dampen demand". OPEC+ has resumed about two-thirds of the capacity it stopped at the beginning of the outbreak. They plan to restore surplus capacity at a rate that will both meet the recovery in fuel demand and avoid a sharp drop in oil prices.

This article originated from the international derivatives think tank