On Wednesday, OPEC+ is scheduled to start their two days of meeting to address their oil supply cut pact amid oil loss and the anxiety over the Omicron coronavirus variant.
The Organization of the Petroleum Exporting Countries (OPEC) will meet today after 13.00 GMT. The OPEC+ meeting will proceed on Thursday.
Regarding the output cut, some OPEC+ ministers which include Russia and Saudi Arabia, have voiced that the alliance needs not respond hastily to the current development in the oil market. Their opinion came despite some analysts suggesting that they could put a stop to the plan of adding 400,000 bpd of crude supply to the market in January.
OPEC+ has been weighing the effects of last week's announcement by the US and other major oil consumers to release emergency crude reserves to tackle higher energy prices.
On Tuesday, crude prices slumped to near USD70/barrel from up to USD86/barrel in October. Brent plunged by 16.4% in November, while WTI nosedived by 20.8% and marked the biggest monthly fall since March 2020.
Adding more pressure to crude prices is the statement from the US Federal Reserve Chair Jerome Powell that the bank would likely assess accelerating its reduction of bond purchases amid a strong economy and expectations that a surge in inflation will persist.
