Oil Price Rises As Investors Focus On OPEC + Decision

Baghdad Oil prices rose, today, Thursday, to compensate for the losses of the previous day, as investors monitored the OPEC + decision regarding supply policy, but the gains were capped amid fears that the “Omicron” virus variable would harm fuel demand.

Brent crude futures rose 78 cents, or 1.13%, to $69.67 by 05:02 GMT, after falling 0.5% in the previous session.

US West Texas Intermediate crude futures rose 77 cents, or 1.17%, to $66.34 a barrel, after falling 0.9% on Wednesday.

Global oil prices have lost more than $10 a barrel since last Thursday, when news from Omicron shocked investors.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, are likely to decide on Thursday whether to release more oil to the market as previously planned or restrict supplies.

Since August, the group has been adding an additional 400,000 barrels per day of production to global supply each month, gradually reducing record cuts agreed in 2020.

However, the new format has complicated decision-making, with some observers predicting that OPEC+ may stop these additions in January in an attempt to slow supply growth.

Concerns about the impact of the coronavirus Omicron variable rose after the first case was reported in the United States, and the Bank of Japan warned of economic pain as countries respond with stricter containment measures.

 

Source: National Iraqi News Agency