OPEC+ agrees to oil output increase
The design of oil refineries is configured to process specific crudes like Brent or Light Arab Crude. Changes in the configuration requires heavy investment, often out of the reach of small refineries. PHOTO: FILE
OPEC+ agreed on Tuesday to stick to its planned increase in oil output for February because it expects the Omicron coronavirus variant to have a short-lived impact on global energy demand. The group of producers comprising the Organisation of the Petroleum Exporting Countries (OPEC) and allies including Russia has raised its output target each month since August by 400,000 barrels per day (bpd). OPEC+ is unwinding record production cuts of 10 million bpd, which were imposed in 2020, as demand and prices recover from their pandemic-induced slump. Brent crude rose 50% last year and has rallied so far in 2022, trading 2% up above $80 on Tuesday.
Published in The Express Tribune, January 5th, 2022.
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