The Organization of Petroleum Exporting Countries (Opep) and allies have postponed technical meetings until later this week, buying time to assess the impact of the new variant of the omicron coronavirus in demand and prices of Petroleum, according to OPEC+ sources and documents.
prices of Petroleum plummeted along with others financial markets on Friday by more than 10%, the biggest one-day drop since April 2020, with the new variant scaring investors and raising concerns that a supply surplus could rise in the first quarter.
Friday’s slump was exacerbated by low liquidity due to a public holiday in the United States.
Ahead of Friday, OPEC had already predicted the surplus would skyrocket after the US and other big consumers decided to release oil inventories to help bring prices down.
OPEC and its allies, known as OPEC+, have moved the date of their joint technical committee meeting to Wednesday from Monday, according to documents. OPEC will hold a meeting on the same day.
A joint ministerial monitoring committee will meet on Thursday instead of Tuesday, the documents showed. OPEC+ will also meet on the same day, when a policy decision will likely be announced.
“We need more time to understand what this new variant is and whether we need to overreact or not,” said an OPEC+ source.
Source From: Moneytimes