OPEC+ Concerned Over Oil Market in Light of New COVID Variant
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OPEC+ closely monitors the new COVID-19 variant amid worries over the outlook for the oil market.
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A 3D printed oil pump jack is seen in front of an Opec logo. (Credit: Reuters)
OPEC+ is closely eyeing the new COVID-19 variant as some are expressing their concerns that it may have an adverse impact on the oil market outlook days ahead of a policy-setting meeting, sources reported.
The organization is already facing attempts to release oil stocks, led by the US, in a bid to mitigate the surge in prices. However, a source reported that Russia, a key member of the organization, has not yet expressed concern over the variant.
OPEC+ has resisted the US calls for lowering oil prices, adhering to unwinding 2020's output curbs through adding 400,000 barrels of supply per day every month since August.
Global authorities reacted in a very alarmed manner to the detection of a new COVID-19 variant, as the European Union, the United Kingdom, India, and various other counties announced stricter border control. Oil dipped by over 10%, making for the largest plunge since April 2020.
"Not good as it adds bearishness to an already weak outlook," said an OPEC delegate about the new variant while asking to remain anonymous. Another said, "This could be the case, although it was too early to say."
OPEC will be meeting on December 2 to decide output policy, which could see them assessing the significance of the variant for the market.
