Crude oil recovers as OPEC plans to reconsider its output if demand suffers

December 06, 2021 12:42 PM AEDT | By Arpit Verma

Crude oil recovers as OPEC plans to reconsider its output if demand suffers — Image source: © Edhardream | Megapixl.com

OPEC’s surprising move

The Organization of the Petroleum Exporting Countries along with its allies, together known as OPEC+ decided to stand with its plan of increasing the output by 400,000bpd in January.

However, the group also stated that it can change its policies if demand suffered from measures to stop the spread of the Omicron variant of coronavirus. The cartel said that they could arrange a meeting before their scheduled meet on 4 January.

OPEC

Source: © Gumpapa | Megapixl.com

Crude oil has been under the challenging phase for weeks as the US along with other leading oil consumers of the globe decided to release oil from their strategic reserves to cool down prices.

Bottom Line

Crude oil prices recover significantly on Monday after trimming earlier big gains on Friday on worries that rising cases of the new variant of coronavirus could dampen the oil demand in the future.

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