OPEC + ministers will meet on December 2 to set January crude oil quotas, but several delegates questioned the need for an immediate reaction.
Opec + ‘s roadmap to restore production removed from the market in 2020 calls for monthly increases of 400,000 b / d until April 2022, followed by an increase of 432,000 b / d each month until all of the original cut of 9 , 7 mn b / d will not be returned. The plan includes the option of a three-month hiatus to deal with any sudden market development, such as the return of Iranian barrels or further tightening measures due to a new wave of Covid. But this hiatus is less likely to be used, as infrastructure problems and sabotage have prevented some
OPEC + members to reach their quotas in recent months – the
production was 0.7 mn b / d lower than the October target.
Opec + ministers had said the supply shortage was temporary and expressed concern about a potential surplus in the first quarter of next year. Since then, the outlook on demand has deteriorated slightly as several European countries have imposed new restrictions in response to a fourth wave of Covid -19. “We believe that the release of strategic reserves does not have a lasting impact on prices, says Equita, as it is not a sustainable source of supply and the effect of such intervention on the market would be only temporary and limited – the announced release is only 50% of a day of global oil consumption “. The shares favored by Sim in the sector are Eni and Galp among the integrated companies and Tenaris in the services segment.