This includes increasing production by 400,000 barrels per day in February

The “OPEC Plus” decision reflects the decline in fears of excess oil and the risks of “Omicron”

Analysts and sources said that the decision of the "OPEC Plus" bloc this week to adhere to the planned increase in oil production for the month of February, reflects the easing of fears of a large surplus of oil in the first quarter, in addition to a desire for consistency in the guidance directed to the market.

The group of producing countries, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, decided the day before yesterday to increase production by 400,000 barrels per day next February.

The United States had urged the bloc to pump more crude oil to support the global economic recovery from the pandemic and calm prices, which reached about $80 a barrel.

However, "OPEC Plus" said that the market does not need more oil.

During the talks, ministers and officials studied the internal “OPEC Plus” data, before the meeting last Tuesday, and it indicated an oversupply of 800,000 barrels per day last January, and 1.3 million barrels per day in February.

Although this represents a surplus over demand, it is well below the initial estimates that raised concerns.

In December, the internal OPEC Plus figures estimated the surplus in January at two million barrels per day and increasing it to three million barrels per day in February.

A delegate who participated in the "OPEC Plus" meeting said: "The picture has improved since the previous decision," referring to expectations for the first quarter of the year.

"Inventories are down," he added.

Other delegates said that “the adjustments are due in part to the (OPEC Plus) assessment that the mutated (Omicron) from the Corona virus will have a limited impact on demand and that the inability of some producers to increase production due to factors limiting production capacity will keep the actual increase in supplies low.” .

Investors seem to agree that the Omicron effect is minor.

Oil prices rose to $80 a barrel to almost return to the level they were on November 26th, when news started spreading about the emergence of the new mutation, which led to a drop in prices on the same day by more than 10%.

Follow our latest local and sports news and the latest political and economic developments via Google news