On Wednesday, Bloomberg cited an undisclosed document that OPEC’s advisory body predicted that the releases of oil reserves by the US and other oil consumer majors would likely cause a global surplus early in 2022.
The Economic Commission Board of the Organization of the Petroleum Exporting Countries (OPEC) reportedly expected that in January, the global crude oil markets would grow by 1.1 million bpd to 2.3 million bpd and 3.7 million bpd in the following month if the release commitments are fulfilled.
On Tuesday, the US announced the plan to release 50 million barrels of oil from strategic reserves in coordination with smaller releases from China, India, South Korea, Japan, and Britain.
The decision was a reaction to OPEC and allies (OPEC+) ignoring calls to increase output to balance the oil market.
OPEC did not immediately respond to a request for comment.
