OPEC+ Postpones Oil Production Adjustment Meeting... "Need to Analyze Impact of Omicron Variant"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The international oil-producing countries' consortium, OPEC Plus (OPEC+), is reported to have postponed its scheduled oil production adjustment meeting from the 2nd of next month to the 4th. This move is interpreted as an effort to exercise more caution in adjusting oil production following last week's sharp drop in international oil prices due to the spread of the COVID-19 Omicron variant.

On the 28th (local time), major foreign media outlets quoted OPEC+ sources saying, "OPEC+ has postponed the Joint Technical Committee meeting from the 1st to the 3rd, and the ministerial meeting for oil production adjustment from the 2nd to the 4th, each by two days," adding, "They decided to take more time to analyze what the newly spreading Omicron variant is and whether a more proactive response is necessary."

Earlier, on the 26th, international oil prices sharply declined due to concerns over expanded lockdown measures by various countries and reduced oil demand amid the spread of the Omicron variant. At the New York Mercantile Exchange (NYMEX), West Texas Intermediate (WTI) crude oil fell 13.06% from the previous session to $68.15 per barrel, breaking below the $70 mark. Brent crude oil on the London ICE Exchange also closed sharply down 11.53% at $71.59 per barrel compared to the previous day.

Accordingly, there are forecasts that OPEC+ will significantly adjust its existing policy of increasing production by 400,000 barrels per month. Previously, major oil-consuming countries such as the United States, China, Korea, Japan, and India announced plans to jointly release strategic petroleum reserves, raising concerns that OPEC+ might temporarily suspend its production increase measures.

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