Opec meeting today2 Dec 2021 11:00
Decisions, Decisions.
So many factors in play for Opec specifically Omnicron and the SPR.
To pause the planned increase for January, or even to cut production, in response to the US led SPR will be good for supporting the price although, in my opinion, Opec will not be too bothered by daily oil trading prices that can be manipulated by traders.
You only have to look at previous Opec meetings and the turbulence of the price, prior and after previous meetings
Opec will be looking at demand and any signs of slowdown will drive their decision, not the daily oil price that I sometimes pay too much attention to.
A rollover of any decision to pause or cut maybe with a special meeting when more varient data is available is a possibility.
If this is the case, together with the planned increase of 400.000 per day in January going ahead ( although, in reality, they have not provided the December increase due to African members maintenance and production issues) then I believe, oil will fall in the short term.
A pause, or snip of the planned increase would be more beneficial short term.
Long term. Year by year, certainly for the next decade or two, demand will outstrip supply.
No more boom and drill, drill, drill to bust. There is only drill now and with Opec united ( and if they remain so beyond 2022 ) are holding all the cards and control on taps.
Also, forget Greta. Read today's RNS. BP also have the activists covered.
So, in my opinion, many happy years ahead whatever the short term problems. BP = Cash Machine.
Have a great day
Mark
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