OPEC, Russia agree to keep boosting oil output, sending prices lower
Summary
OPEC+ had considered pausing production rises as Omicron fueled concerns about demand, and the US released stockpilesOPEC+ had considered pausing production rises as Omicron fueled concerns about demand, and the U.S. released stockpiles
OPEC and a group of Russia-led oil producers have agreed to stick to their plan to gradually pump more crude, according to people familiar with the deal, despite worries about demand following the identification of a new Covid-19 variant.
The Organization of the Petroleum Exporting Countries and allied producers led by Russia—which together call themselves OPEC+—said they would raise their collective production by another 400,000 barrels a day in January, people familiar with the matter said. The group agreed earlier this year to boost output in such increments each month, until production reaches pre-pandemic levels.
Thursday’s deal drove Brent crude, the international oil benchmark, down by 1.9% to around $67.50 a barrel, while West Texas Intermediate fell by 2.1% to roughly $64.20.
