OPEC+ expects a significant oil glut in early 2022

According to an internal report seen by Reuters, OPEC+ expects a worse surplus than expected in the global oil market in the first quarter of 2022, which may give the organization another reason to suspend monthly supply
increases, according to oil price network news on December 1.

OPEC+ now expects an overproduction of 2 million barrels per day in January, 3.
4 million barrels per day in February and 3.
8 million barrels
per day in March, according to a report seen by Reuters.

The internal document also provides an initial insight into OPEC+'s reflections
on the potential impact of the Omicron variant on global oil demand.

At the moment, experts from the group believe that the impact of the new variant is related to jet fuel, especially in Africa and Europe
.

An internal OPEC+ report seen by Reuters said: "Transport fuel demand within Europe could also be affected
.
" ”

Earlier this week, an internal report seen by Energy Intelligence firms prepared for an OPEC+ technical committee meeting showed that global oil inventories will grow faster
next year than previously expected.

The report analyzes the state of the oil market before the collapse in oil prices last Friday, a reaction to the variant, which caused the price of Brent crude to fall to $70 per barrel and WTI crude to below
$70 per barrel.

OPEC and OPEC+ will meet on Wednesday to discuss January production policies
.
OPEC and the Joint Technical Committee (JTC) will meet on Wednesday, followed by an all-OPEC+ Group ministerial meeting on Thursday, after which the decision
will be announced.