16:15דצמבר 03, 2021MT Newswires

OPEC+'s Decision to Stick With Monthly Additions Shows Confidence in Rising Demand, Credit Suisse Says

Credit Suisse noted that Thursday's decision from the OPEC+ group to leave its policy of adding 0.4-million barrels per day of supply to the market monthly unchanged despite prices that had dropped 22% from their Nov.9 high is a signal the group sees demand remaining high despite concerns over the impact of the Omicron Covid-19 variant.

" OPEC + members voted to keep its current production plan in place, authorizing a +400mb/d output increase in January. This was in-line with our expectations," the investment bank said in a note. "Despite some OPEC nations earlier indicating that there could be a pause to the planned hikes for the month of Jan and Feb, our base case was always OPEC+ will not deviate from its plan. OPEC+ left open the opportunity to adjust policy if conditions change when they meet again. Again, we do not see them holding back the +400mb/d increase in planned output for February when they do meet again on Jan 4th, 2022. We view OPEC+ decision not to pause planned hikes as somewhat bullish oil as they are signaling to the market that demand is still holding up well despite concerns of Omicron variant of the coronavirus. While we do see rapidly spreading Omicron variant weighing heavily on international jet fuel demand, we still see support for Brent at $75/bbl, given higher gasoline, diesel and heating oil demand."