Despite the Omicron coronavirus type generating new worries about demand, major oil producers voted on Thursday to resume hiking output levels in January.
So far, the OPEC+ coalition, led by Saudi Arabia and Russia, has rejected US-led demands to dramatically increase supply in order to contain rising energy prices.
Observers had expected the club to choose for a production freeze in January, especially after the Omicron variant’s appearance prompted governments to impose fresh travel restrictions and consider other steps that may decrease demand and harm oil prices.
However, after meeting via video conference for a little more than an hour on Thursday afternoon, the 13 members of the Vienna-based Organization of Petroleum Exporting Countries (OPEC) and their ten allies decided to maintain the modest monthly increase in output of 400,000 barrels per day that they have been doing since May.
The OPEC+ summit comes a week after the US, China, India, and Japan, to a lesser extent, opted to draw into their strategic reserves to assist bring down crude prices, following a price spike that has hampered economic recovery.
