• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • BOE Intel
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts/Data
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
    • Data
      • Canada Oil Market Data
      • Canada NG Market Data
      • USA Market Data
      • Data Downloads
  • Jobs

Oil prices edge higher ahead of OPEC+ output policy meeting

January 4, 20227:35 AM Reuters0 Comments

Oil prices rose on Tuesday as investors embraced expectations that oil producers will add supply at a meeting on Tuesday as a sign that fuel demand remains robust despite the spread of the Omicron variant of COVID-19.

U.S. West Texas Intermediate (WTI) crude recouped its earlier loses and rose 89 cents, or $1.17 to $76.90 a barrel. 

CL1! chart by TradingView
Brent crude futures gained $1.03, or 1.29% to $79.89 a barrel.

The benchmark contracts both climbed more than 1% on Monday.

“Number one driver (of global oil prices) at the moment is management of the supply side of the market by OPEC+. While there are also outages in Libya and Ecuador which are supportive,” said Virendra Chauhan, analyst from Energy Aspects.

Chauhan also said that fuel demand concerns from the spread of Omicron are ebbing and the planned releases of crude from various national strategic petroleum reserves are smaller than expected.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and allies, together called OPEC+, are due to meet on Tuesday. The Joint Ministerial Monitoring Committee will meet at 1200 GMT, followed by a ministerial meeting at 1300 GMT, both by video conference.

Three OPEC+ sources told Reuters the group is likely to stick to its plan to increase output by 400,000 barrels per day in February, as it has done each month since August.

RBC Capital Markets analysts said OPEC+ was unlikely to change course given the current price outlook, pressure from the administration of U.S. President Joe Biden to boost supply, and no major new COVID-19 mobility curbs.

“Though Omicron (COVID-19 variant) cases continue to climb in key geographies, the absence of widespread lockdown restrictions will likely keep near-term demand concerns in check,” RBC analysts said in a note.

Despite the emergence of Omicron and its potential impact on international travel, economies such as Australia are sticking to their reopening plans.

Factory activity also grew in Asia last month as companies took global cases of Omicron in stride.

However, analysts warned that OPEC+ may have to change tack if tension between the West and Russia over Ukraine flares up and hits fuel supplies, or Iran’s nuclear talks with major powers make progress, which would lead to an end to oil sanctions on Iran.

“We think these two events represent major wildcards that could quickly alter the price trajectory and test OPEC’s rapid response mechanism,” RBC analysts said.

Follow BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Week in Review – Stock gainers/fallers and most read articles
  • US buys 3 million barrels for oil stockpile, announces plan for 3 milllion more
  • US drillers cut oil and gas rigs for sixth week in a row – Baker Hughes
  • US burns more natgas as wind power drops, Canadian wildfires cloud solar
  • Canadian Rig Count Summary – Another week of increased activity

Return to Home
Alberta GasMonthly Avg.
CAD/GJ
Market Data by TradingView

    Report Error







    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    BOE Network
    © 2023 Stack Technologies Ltd.