OPEC+ lowered its oil market surplus forecast for the quarter

Just a day before OPEC and its allies were considering another production increase, the organization lowered its estimate
of the global oil market surplus for the quarter, Energiesnet reported on January 3.

The results could encourage the 23 OPEC+ members to continue to raise output modestly, which delegates said they expected to increase
when they met on Tuesday.
The alliance, led by Saudi Arabia and Russia, is gradually resuming the 400,000 barrel-per-day production
increase that was halted during the pandemic.

According to an internal study conducted by the Organization of the Petroleum Exporting Countries (OPEC) and its allies on Monday, the organization had a surplus of 1.
4 million barrels per day in the first three months of 2022, about 25%
less than its estimate a month ago.
The main driver of this change is the weakening
supply outlook for the alliance's competitors.

The overall picture for 2022 was also slightly stronger due to a stronger demand outlook, averaging a full-year surplus of 1.
4 million barrels per day, instead of the 1.
7 million barrels
seen by the Committee last month.
The report, compiled by OPEC's internal research department in Vienna, is being evaluated
by the alliance's Joint Technical Committee on behalf of ministers.

Oil futures rose, with West Texas Intermediate up 0.
7 percent at $75.
76 a barrel at 7:16 a.
m.
in New York
.

OPEC reiterated that it considers the impact of the Omicron variant to be "mild and short-lived" as "the world becomes more equipped to respond to the pandemic and its associated challenges.
"

The report also notes that OPEC+ could face a larger surplus
later in 2022.
The group has repeatedly said it can suspend or even cancel planned supply increases if needed
.