Opec+ oil producers with spare capacity have upper hand in a reshuffle of 2019 quotas – The National

Opec+ oil producers with spare capacity have upper hand in a reshuffle of 2019 quotas – The National

Oil prices have made a strong start to the year. Opening December below $66 per barrel, Brent crude reached $75 by New Year and touched $89.50 on Thursday. $100 seems within sight and the ability of Opec+ to respond is crucial.

The International Energy Agency raised its demand forecasts for this year by nearly 200,000 barrels per day. Both the IEA and Opec grew more sanguine that the economic impact of the Omicron coronavirus variant would be limited.

Yet in December, production from group members bound by cuts grew 300,000 bpd, less than the planned 400,000 bpd increase. Overall output is now 650,000-790,000 bpd under the target. Most of the shortfall comes from Angola and Nigeria, the perennial laggards.