OPEC + will add 400,000 bpd in January despite falling oil prices – .

OPEC + will add 400,000 bpd in January despite falling oil prices – .

The OPEC + group is sticking to its plan to ease production cuts in January by 400,000 barrels per day, despite growing evidence of a larger-than-expected oil surplus early next year.

At the alliance meeting on Thursday, ministers decided to maintain the policy of adding 400,000 bpd to the market each month, as they have been doing since August.

All the ministers of the OPEC + group seem to agree to increase production by an additional 400,000 bpd next month, that is to say by renewing the current policy of adding supply, Amena Bakr, head of deputy office and chief correspondent of Opec at Energy Intelligence, reported, citing sources.

There will also be an extension of the compensation cuts, the sources added.

Ahead of the full OPEC + ministerial meeting, the Joint Ministerial Follow-up Committee (JMMC) held a meeting that ended with the panel making no recommendations for OPEC + production in January.

Shortly before the start of the JMMC meeting, reports indicated that the OPEC + group could discuss adding just 200,000 bpd in January instead of 400,000 bpd, or even a break in the process. production ramp-up, sources told Reuters.

Ahead of the meeting, OPEC + expected a worse-than-expected surplus in the first quarter of 2022.

Some analysts expected the alliance to effectively suspend cuts, given the expected oversupply, a potential impact of the Omicron variant and the SPR versions of several US-led countries.

Earlier this week, Saudi Arabia and Russia had already signaled that the new variant, still very little studied, should not be a reason for making hasty decisions.

Russia currently does not see the need for urgent measures, Russian Deputy Prime Minister Alexander Novak said on Monday.

“We do not see such a need, we will carefully monitor the situation, but there is no need to rush to make hasty decisions,” said Novak, chief oil policy negotiator of Russia at OPEC + .

OPEC + therefore stayed the course and increased its total production quota by 400,000 bpd in January. The new quotas per country, such as reported by Energy Intelligence’s Bakr, include Saudi Arabia and Russia producing up to 10.122 million b / d each in January, with a total OPEC + quota of 40.494 million b / d as follows: By Tsvetana Paraskova for OilUSD

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