OPEC+ approved planned oil production growth

At the remote ministerial conference OPEC +, held on February 2, the participants approved the planned increase in oil production in March by 400,000 barrels per day. The next OPEC+ ministerial meeting will take place on March 2.

The meeting lasted about a quarter of an hour and ended with the expected decision: the parties to the agreement monthly increase oil production by the specified amount after the pandemic cuts in quotas. Nevertheless, Brent oil quotes at the end of the conference briefly rose above $90 per barrel (from $89) - it seems that some players still considered the possibility of an increase in oil supply.

In recent weeks, one investment bank after another has predicted oil at $100 in 2022.

The rationale for most forecasts is an increase in demand to pre-pandemic levels with a shortage of supply, including from OPEC +, caused by underinvestment in the industry. Bank of America predicts both WTI and Brent at $120 per barrel by July. This time, the US shale industry will not rush to increase production, and investors in oilfield services companies will benefit the most, writes the Wall Street Journal.