Adebayo Obajemu

The Organization of Petroleum Exporting Countries, OPEC, and non-OPEC partners have come into agreement to further raise output by 400,000 barrels a day from February.

The oil cartel came into this agreement on Tuesday to abide by its planned increase in oil production from February as energy investors weigh the potential impact of soaring omicron COVID-19 cases.

With this greement , it is expected that there will be a release of supply cuts of roughly 10 million barrels per day.

Recall that in April 2020, the production cut was put in place to assist the energy market after the coronavirus pandemic curb demand for crude.

Analysts say augmenting market supplies is highly desirable especially since the U.S had pressured for more outputs.

International benchmark Brent crude futures traded at $79.87 a barrel on Tuesday, OPEC’s basket of thirteenth crude stood at $78b/d, while U.S West Texas Intermediate crude futures stood at $76.89 a barrel following the fresh agreement.

Oil prices climbed more than 50 per cent last year.

On this sidelines, the cartel made public Monday that it had appointed Haitham Al-Ghais of Kuwait as secretary-general from August.

Al-Ghais, an experienced technocrat of three decades replaces the Nigerian Mohammad Sanusi Barkindo in August this year to become the group’s top diplomat.


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