US and Brent Crude oil dropped $2 a barrel after sources claimed OPEC+ has decided to stick to its planned January output rise of 400,000 per day, Reuters is reporting.
At a meeting held via videoconference on the Thursday, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, resisted US requests for speedier increases in oil output to support the global economy.
However, the meeting remains “in session”, according to a press release issued on Thursday afternoon, meaning the group could revist the decision before the next scheduled meeting on Jan. 4.
Producers have said they did not want to hamper a fragile energy industry recovery with oversupply.
Under its existing pact, OPEC+ agreed to raise output by 400,000 barrels per day (bpd) each month, winding down record cuts agreed in 2020 when demand crashed because of the pandemic.
Thursday’s meeting comes a week after the United States and other major consumers announced they would release emergency crude reserves to temper energy prices.
US President Joe Biden’s administration could adjust the timing of any release if prices dropped substantially, US Deputy Energy Secretary David Turk told Reuters on Wednesday.
OPEC+ forecast a 3 million bpd surplus in the first quarter of 2022 after the release of reserves, up from a 2.3 million bpd surplus previously forecast.