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OPEC+ Faces Output Decision as Omicron Puts Market in Disarray

  • Alliance discusses adding 400,000 barrels a day in January
  • Latest internal estimates show slightly smaller surplus ahead
Photographer: Andrey Rudakov/Bloomberg
Updated on

OPEC and its allies headed into a second day of talks on whether to pause their production increases as the resurgent pandemic throws the outlook for next year into disarray.

With crude already in a bear market as the omicron variant of Covid-19 imperils demand, traders were widely expecting the alliance led by Saudi Arabia and Russia to defer a modest supply hike scheduled for January. On Wednesday, the coalition’s technical experts forecast that markets face a surplus in the first quarter that, although smaller than initially thought, remains substantial.