OPEC, led by Saudi Arabia, and oil-producing countries such as Russia will meet on the 2nd to discuss crude oil production next month and January.
We will be discussing how the spread of new mutant viruses will affect demand, and the focus will be on reviewing our existing plans to increase production.
OPEC, which produces oil in Saudi Arabia, and major oil-producing countries such as Russia will hold an online ministerial meeting on the 2nd to determine the amount of crude oil produced next month.
Oil-producing countries are planning to increase their production volume, which was significantly reduced last year due to the spread of the new coronavirus infection, by 400,000 barrels per day.
However, in the last month after the crude oil price reached a high for the first time in seven years, the United States and Japan announced that they would cooperate to release oil stockpiles, and the supply is expected to increase.
When a new mutant virus, the Omicron strain, was identified, crude oil prices fell sharply due to concerns about restricted economic activity.
Prior to the meeting, Algeria's energy minister said, "There is a risk that the crude oil market will be affected by immigration restrictions," and expressed concern that demand will decline due to the new mutant virus. Even at the meeting place, there was a statement calling for caution from the Presidency.
Oil-producing countries will discuss how the spread of the new mutant virus will affect demand in the talks on the 2nd, and the focus will be on reviewing the conventional plan to increase production next month. ..
Crude oil prices start to fall after soaring
Crude oil prices have risen further in response to rising demand due to the resumption of economic activity.
WTI's futures price, which is an international indicator of crude oil prices, reached a high of 85.41 cents per barrel in October, the highest price in about seven years since October 2014, and the gasoline price in Japan. This led to an increase in the over-the-counter price of gasoline and kerosene.
However, last month, the United States and Japan decided to cooperate to release oil stockpiles, and along with this, crude oil prices began to decline.
Furthermore, when infection of a new mutant virus, Omicron strain, was confirmed in each country, it fell further.
Due to growing concerns about economic activity restrictions and declining demand for crude oil, October 30th, the price was temporarily in the $ 64 range per barrel, which is a high level compared to last year, but in October. It has fallen by more than 20% compared to the peak of.