OPEC+ Meeting to Offer Few Surprises
The meeting of the Organization of the Petroleum Exporting Countries and its allies, or OPEC+, on Tuesday, is expected to offer few surprises as the market manages demand headwinds due to the omicron variant, Tudor Pickering Holt & Co. said in a Monday note.
The investment bank expects OPEC+ to move forward with a planned 400,000 barrels per day of output hikes. However, certain countries in the alliance not being able to hit available quotas is anticipated to remain the norm in early 2022, TPH said.
Even Russia, which is among the larger quota holders, is facing issues, while recent force majeures and outages from Ecuador, Nigeria, Libya and other countries are expected to further limit available supply increases, the bank noted.
TPH said it remains constructive on the crude macro backdrop and expects prices to continue rising in the next few weeks and months. The bank’s Brent outlook of $80-$85 per barrel for the first half remains unchanged.
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