Prices stabilized oil, after giving up previous big gains, middle Fears Increasingly, virus infections Corona Escalating, new Omicron strain may reduce global demand for oil , according to the CNBC Arabic website.
Earlier yesterday, oil prices rose by more than $2 a barrel after the OPEC + group said it may revise its policy to increase production in a short time if the increase in lockdowns due to the epidemic affects demand.
Brent crude futures rose 21 cents, or 0.3%, to $69.88 a barrel when they settled, while US West Texas Intermediate crude futures fell 24 cents, or 0.4 percent, to $66.26 a barrel when they settled.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, surprised the markets on Thursday when it announced plans to increase oil production per month by another 400,000 barrels per day in January.
But producers left the door open for a quick policy change if demand was hit by Omicron’s containment measures. They said they might meet again before their next meeting scheduled for January 4th if necessary.
The participants reiterated the continued commitment of the countries participating in the declaration of cooperation to ensure a stable and balanced oil market, and they also reaffirmed the critical importance of the commitment to full production conformity and the compensation mechanism.
Sources had said earlier, that “OPEC +” will likely adhere to the current production policy, even if it is studying other options, after large fluctuations in crude prices, putting part of US oil reserves on the market, and fears of the repercussions of the new Corona virus mutated Omicron.
Oil prices have fallen to around $70 a barrel from a three-week high of $86 a barrel in October. Prices in November recorded their biggest monthly decline since the start of the pandemic on concerns about a supply glut due to the spread of the Omicron strain.