No need for hasty oil market decisions over Omicron, Russia says

Russia sees no need for urgent action on the oil market over the new Omicron coronavirus variant, Deputy Prime Minister Alexander Novak was quoted as saying on Monday, downplaying the possibility of changes to an OPEC+ oil supply deal this week.


Reuters | Updated: 29-11-2021 17:36 IST | Created: 29-11-2021 16:55 IST
No need for hasty oil market decisions over Omicron, Russia says
Representative image Image Credit: Wikimedia

Russia sees no need for urgent action on the oil market over the new Omicron coronavirus variant, Deputy Prime Minister Alexander Novak was quoted as saying on Monday, downplaying the possibility of changes to an OPEC+ oil supply deal this week. The Organization of the Petroleum Exporting Countries and others led by Russia, a group known as OPEC+, hold online meetings this week to decide on oil production policy.

Sources said on Friday OPEC+ was monitoring developments related to Omicron, with some concerned it might weaken demand. "There is no need for hasty decisions," Novak is quoted as saying by Interfax news agency. His comments were confirmed by his spokesperson.

"We will additionally discuss with the OPEC+ countries the market situation and if any measures are warranted," Novak said, according to the spokesperson. Oil prices rebounded on Monday after tumbling on Friday by more than 10% alongside other financial markets in their largest one-day drop since April 2020 as the new variant added to concerns about a possible supply glut.

Before Friday, OPEC had already predicted the market's surplus would grow steeply after the United States and other major consumers decided to release oil stocks to help cool down prices. The stocks release was decided after OPEC+ resisted U.S. calls to pump more oil to reduce oil prices.

OPEC+ has been reducing its curbs on output by 400,000 barrels per day of oil per month as it winds down record cuts from last year when it cut production by as much as 10 million bpd to address lower demand caused by lockdowns. OPEC+ has some 3.8 million bpd of cuts still in place and some analysts have suggested the group could pause its output increases.

This week's meeting will discuss January's output. Novak said OPEC+ partners had not asked to renegotiate their current deal in response to Omicron.

OPEC will meet on Wednesday, followed by a joint meeting of experts of OPEC+. On Thursday, an OPEC+ ministerial monitoring committee will meet, followed by an OPEC+ meeting.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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