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Oil price soars and exceeds $80 after OPEC+ decides to increase production to 400.000 barrels per day (bpd) in February and the US celebrates

Written by Flavia Marinho
Published 11/01/2022 às 09:23
oil - price - dollar - production - USA - Brent -
Brent oil

US celebrates OPEC+ decision to continue to increase oil production and add 400.000 barrels per day (bpd) in February

The price of oil jumped on Tuesday (04/11) to 80 dollars per barrel, its highest level since November. The surge came after OPEC+ agreed to maintain its planned February production increase based on indications that the Omicron coronavirus variant would only have a slight impact on demand.

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Brent rose $1,02, or 1,3%, to $80 a barrel, almost back to the level it was on Nov. 26, when reports of the new variant first appeared, sending it down more than 10 % in prices that day.

US crude oil (WTI) rose 0,91 cents, or 1,2%, to settle at $76,99.

White House welcomed OPEC+'s decision to continue to increase oil production and add 400.000 barrels per day (bpd) in February

According to Rystad Energy's head of oil markets, Bjornar Tonhaugen, "the oil market is bullish today as a result of the optimism coming from the monthly OPEC+ meeting, which is helping oil prices to rise," he said.

Four OPEC+ sources told Reuters the group agreed at its Tuesday meeting to add 4 barrels per day (bpd) to production in February because it expects the Omicron variant to have a short-lived impact on demand.

His decision reflects an alleviation of concerns about a large surplus in the first quarter, as well as a desire to provide consistent guidance to the market. 

A White House welcomed OPEC+'s decision to continue to increase production, which will help facilitate the economic recovery, a spokesperson said. 

“It seems the market is betting that Ômicron is the beginning of the end of Covid-19,” said Scott Shelton, energy expert at United ICAP.

Flavia Marinho

Flavia Marinho is a Production Engineer with a postgraduate degree in Electrical Engineering and Automation, with extensive experience in the onshore and offshore shipbuilding industry. In recent years, she has dedicated herself to writing articles for news websites in the areas of industry, oil and gas, energy, shipbuilding, geopolitics, jobs and courses, with over 7 thousand articles published. Her technical expertise and communication skills make her a respected reference in her field. Contact us to suggest topics, advertise job openings or propose advertising on our portal.

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