Saudi Arabia refinery Reuters: OPEC+ monitoring new virus variant, some concerned over outlook - sources
LONDON/MOSCOW (Reuters) - OPEC+ is monitoring developments around the new coronavirus variant, sources said on Friday, with some expressing concern that it may worsen the oil market outlook less than a week before a meeting to set policy.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is already facing a release of oil stocks led by the United States to try to cool prices. Still, a source said Russia, a key OPEC+ member, was not concerned about the virus variant yet.OPEC+ has resisted U.S. calls to do more to lower oil prices, continuing to unwind last year's record output curbs by adding 400,000 barrels of supply per day every month since August. Next week's meeting will discuss January's output.
Global authorities reacted with alarm to news of the B.1.1.529 variant, with the EU, Britain and India among those announcing stricter border controls. Oil prices fell more than 9% on Friday to below $75 a barrel. [O/R]
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WNU Editor: If this Covid variant is as bad as some fear, it is a given that OPEC+ will drastically cut oil production. They do not want a repeat from last year at the height of the pandemic when oil prices hit a few dollars a barrel.