OPEC+ to raise February oil output by 400,000 bpd as planned

MOSCOW/WASHINGTON, Jan 10 (PRIME) -- The OPEC+ alliance will continue to increase combined oil output as planned, by another 400,000 barrels per day in February, the organization said in a statement on January 4.

All OPEC and non-OPEC countries that participate in the agreement talk of the critical importance of full compliance with the obligations and the compensation mechanism that was prolonged until the end of June 2022, the statement read.

The next ministerial meeting of OPEC and non-OPEC countries was scheduled for February 2.

Russian Deputy Prime Minister Alexander Novak said in an interview to Rossiya 24 television channel that the country’s compliance with the deal amounted to 97% in November 2021. Russia would raise its output of oil and condensate to 85% of the maximum reduction under the OPEC+ deal in February 2022.

The maximum cut of Russian oil production reached 2.5 million barrels per day in May–June 2020. Output will grow by 1.7 million barrels per day in February 2022 as compared with May–June 2020, he said.

The omicron variant of the COVID-19 coronavirus creates uncertainties on the oil market, but not lower demand.

“We assume that there are uncertainties connected to the spread of the omicron variant. Nevertheless, observations and analysis show that the level of hospitalizations is rather low in spite of the quick spread of the infection, and it has no impact on contraction of demand,” Novak said.

“This is why we think that we have to continue with the obligations that the OPEC+ undertook to increase production, and this is why a joint decision (to raise output by 400,000 barrels) was made.”

U.S. White House Press Secretary Jen Psaki said that Washington welcomed the decision of OPEC and non-OPEC states to raise combined oil production.

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