USOI - OPEC no longer has incentive to maintain oil production increases

Analysts say the discovery of a new coronavirus variant likely will give the OPEC+ countries sufficient reason to pause planned production hikes, which already was a distinct possibility in reaction to the release of oil reserves by the U.S. and other energy consumers. OPEC+ is leaning toward abandoning its previous plan for a modest output increase scheduled for January when it meets December 1-2, Bloomberg reports, citing delegates who were not identified. "The emergence of a new COVID variant that could spawn renewed shutdowns and travel restrictions is precisely the type of change in market conditions that could cause ministers to deviate from their plan" to add barrels, Rapidan Energy's Bob McNally tells Bloomberg. "The timing of this week's release was always questionable ahead of next week's OPEC meeting. Looking at it now, it seems even more so," says CMC Markets' Michael Hewson, according to MarketWatch. WTI crude (CL1:COM) closed Friday

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OPEC no longer has incentive to maintain oil production increases