OPEC and its allies meet.. A report expects the growth of the surplus in the oil market and the Omicron strain will affect jet fuel
Attention is turning to the meetings of the Organization of Petroleum Exporting Countries (OPEC) and its allies, which began today, Wednesday, via video, and will continue until Thursday, to discuss production policies in light of price changes and developments caused by the new strain of the Corona virus, “Omicron”.
Prior to the start of the meeting, Reuters news agency said that it had seen an internal report of the “OPEC Plus” alliance, which includes members of the organization and countries from outside, expecting the surplus in the global oil market to grow to two million barrels per day in next January, and to 3.4 million barrels per day in February. / February and 3.8 million barrels per day in next March.
The report pointed to the repercussions of the latest strain of the Corona virus and the closures of the borders for travelers from some countries and the suspension of flights.
“Overall, it appears that Omicron’s current impact will be on jet fuel, particularly in Africa and Europe,” the report said.
“Demand for transportation fuels in Europe may also be affected,” he added.
Today’s meeting, Wednesday, is devoted to OPEC member states, before their partners in the OPEC Plus alliance join them, tomorrow, Thursday, to agree on production levels for the next month.
Meanwhile, the White House expressed its hope that the OPEC Plus countries would increase their production to meet global demand for fuel.
White House spokeswoman Jen Psaki said that the US administration is frustrated by the rise in gasoline prices, despite the decline in crude oil prices.
She added that the White House is in regular contact with member countries of the OPEC Plus alliance, and hopes that the alliance will take measures at its meeting tomorrow, Thursday.