OPEC postpones technical meetings to evaluate Omicron impact -Bloomberg News

OPEC is moving two technical meetings to later this week in order to give committees more time to evaluate the impact of the new Omicron coronavirus variant, Bloomberg News reported on Sunday, citing delegates from some member countries.

Illustrative Image
Illustrative Image

The Organization of Petroleum Exporting Countries (OPEC) is moving its joint technical committee meeting to Wednesday, Bloomberg reported. The joint ministerial monitoring committee, which comprises representatives of the broader oil producing OPEC+ group, will meet on Thursday, it added.

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 plunged more than 10%, the largest one-day drop since April 2020.

"Not good as it adds bearishness to an already weak outlook," said an OPEC delegate about the new variant, asking not to be identified. Another said this could be the case, although it was too early to say.

OPEC+ meets on Dec. 2 to decide output policy. Another source said the group would assess the significance of the variant for the market.