• 2 days The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 3 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 1 day European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 3 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 4 days Demonising fossil fuels has caused major grid problem in Australia
  • 7 hours "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 9 days "And this is perhaps the most dangerous kind of government there can be."
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 6 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 330 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 8 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

OPEC+ Expects Large Oil Glut In Early 2022

  • OPEC internal report reflects worse-than-previously expected surplus in the first quarter of 2022
  • OPEC+ now expects a surplus of 2 million barrels per day (bpd) in January
  • Currently, the group’s experts see the impact of the new variant as jet fuel-related

OPEC+ expects the global oil market to show a worse-than-previously expected surplus in the first quarter of 2022, according to an internal report seen by Reuters, which could give the group another reason to pause monthly supply additions.

OPEC+ now expects a surplus of 2 million barrels per day (bpd) in January, 3.4 million bpd in February, and 3.8 million bpd in March, the report seen by Reuters shows.

The internal document also gave initial insights into the OPEC+ thinking about the potential impact of the Omicron COVID variant on global oil demand.

Currently, the group’s experts see the impact of the new variant as jet fuel-related, especially in Africa and Europe.

Following the discovery of the new variant, many countries banned flights from South Africa and other African countries, some—like Israel and Japan—closed borders to foreign visitors, while others, such as the UK, tightened requirements for entry by requiring all foreign visitors—regardless of vaccination status—to take a PCR test and self-isolate until they get back a negative result.

“Transportation fuel demand within Europe might be also affected,” the internal OPEC+ report seen by Reuters says.

The new variant emerged just as some European countries announced tighter restrictions to curb surging number of COVID cases, including a full lockdown in Austria.

Earlier this week, an internal report prepared for the technical committee meeting of OPEC+ seen by Energy Intelligence showed that global oil stocks were set to rise faster next year than previously expected.

The report analyzed oil market conditions before the Friday plunge in oil prices as a reaction to the Omicron variant, which sent Brent Crude down to the low $70s and WTI Crude below $70 per barrel.

OPEC and OPEC+ begin on Wednesday meetings to discuss production policy for January. OPEC and the Joint Technical Committee (JTC) are meeting on Wednesday, to be followed by a ministerial meeting of the full OPEC+ group on Thursday, after which decisions will be announced.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment
  • Mamdouh Salameh on December 01 2021 said:
    OPEC+ was absolutely right in not heeding President Biden’s repeated calls for increasing production because it didn’t want to tip the global oil market towards glut.

    And while latest reports from the WHO indicate that the omicron variant isn’t more dangerous than the previous variants and that available vaccines do provide immunity against it and therefore a global lockdown is very unlikely, its impact could be fuel-related thus affecting the aviation industry slightly. This explains OPEC+ projections of a surplus in crude oil supplies in January and February.

    However, both the global economy and the global oil demand are robust enough to absorb this surplus.

    In view of the above and also the release of 50 million barrels from the US Strategic Petroleum Reserve (SPR), OPEC+ might consider freezing any more increases in production possibly until the second quarter of 2022 if the market warrants it.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News