The Organization of the Petroleum Exporting Countries (OPEC) together with its allies OPEC+ to hold two days of meeting on Wednesday to decide to increase or restrain supply of crude amid falling price of oil and potential gloomy demand outlook posed by Omicron variant.
The West Texas Intermediate (WTI) fell as low as near $70 a barrel on Tuesday from as high as $86 in October.
As reported by Reuters, Louise Dickson, senior oil markets analyst at Rystad Energy said, “The threat to oil demand is genuine,”. He further added, “Another wave of lockdowns could result in up to 3 million bpd (barrels per day) of oil demand lost in the first quarter of 2022.”
The OPEC members are to meet on Wednesday after 1300 GMT, followed by a meeting on Thursday of OPEC+.
Earlier some market strategists said, OPEC+ might hold plans to add 400,000 barrels per day of supply in January.