Prices continue to rise as OPEC + celebrate its founding

As the OPEC+ group commemorates the 5th anniversary of its founding, oil prices continued to rise despite the ongoing increase in the rate of infections with the Omicron variant, as Brent crude rose 3.3 percent.

The cancellation of many flights did not affect the price rise, which amounted during this year to more than 45 percent, supported by the recovery in demand and reducing of production by (OPEC) and (OPEC+), Reuters reported.

Brent and WTI edged higher with the former seeing a +0.73 percent as of 1:30 p.m. Saudi time while the US grade is going up by +0.86 percent.

Looking at the bigger picture:

• Investors are awaiting the next OPEC+ meeting on January 4th to ensure that it continues with its plan to increase 400,000 barrels per day of its production in February.

• Heating demand across the US for the week ending Saturday, Jan. 1, 2022, is forecast to be less than the long-term normal for this time of year, Bloomberg recorded, as Bloomberg said.

Through a micro lens:

• In December 2016, when the OPEC+ group was established, the markets were turbulent due to the threat posed by the shale oil boom in the US. The group led to control production and stabilize prices, Bloomberg reported.

• After years of fluctuation in prices, this year witnessed a significant improvement in prices, which was reflected in the increase in the income of oil and gas producing countries, CNBC reported.

• Although Venezuela took advantage of the high oil prices during the current period, pumping more than one million barrels per day, the damage that occurred to the oil industry as a result of the US sanctions may disrupt the production of larger quantities.

Source: Arab News