Oil intends to fight OPEC + if Omicron demands it Reuters

By Sonali Paul

MELBOURNE (Reuters) – Oil prices rose on Friday as OPEC + said it would review supply increases ahead of the next meeting if the Omicron variant meets demand, but prices were still on their way to a sixth-week decline.

West Texas Intermediate (WTI) crude futures rose 27 cents or 0.4% to $ 66.77 a barrel at 0122 GMT, up 1.4% on Thursday.

futures rose 12 cents, or 0.2%, to $ 69.79 a barrel after rising 1.2% in the previous session.

The Organization of the Petroleum Exporting Countries, Russia and its allies, jointly known as OPEC +, surprised the market on Thursday in January when it stalled plans to increase its supply of 400,000 barrels per day (bpd).

However, the producers left the door open for rapid policy change if the demand was met with measures to sustain the spread of the Omicron coronavirus variant. They said they could meet again before their next meeting on Jan. 4, if necessary.

This raised prices for “traders who were reluctant to bet against the group eventually interrupted production hikes,” analysts at ANZ Research said in a statement.

Analyst Ann-Louise Hittle Wood Mackenzie said it made sense for OPEC + to maintain its policy for now, as it was not yet clear whether Omicron could deal with existing vaccines.

“The team members are in a regular relationship and are closely following the market situation,” Hittle said in comments via email.

“As a result, they may react quickly when we begin to better understand the magnitude of the impact of COVID-19’s Omicron variant on the global economy and demand.”

The market has been released all week with the emergence of new Omicron appearances and blockages, reducing fuel demand and boosting OPEC + to halt its production hikes.

Brent was ready to end the week at around 4%, and while the WTI was on the verge of a 2% weekly decline, both were down for the sixth consecutive week.