OPEC+ Needs to Be Careful in Policy to Balance Market

OPEC+ needs to be careful in implementing its policy because it needs to balance the market amid forecasts of softening demand in the first quarter of 2022, the UAE's energy minister said on Nov. 8.
"We are seeing in the first quarter [of 2022] ... a surplus in the balance due to the demand softening," Suhail al-Mazrouei told reporters on the sidelines of Africa Oil Week in Dubai, S&P Global reported.
"We are seeing in the pandemic some hike in certain countries. We have to be careful. We have to balance and make sure we are doing the required volumes."
Despite the low inventories and US pressure to pump more oil, OPEC+ ministers agreed on Nov. 4 to hike output as planned by 400,000 bpd in December, citing concerns about Covid-19 infections and demand recovery.
OPEC+ stood firm on boosting crude output quotas by the December increment despite prices holding on close to three-year highs. 
The December hike is in line with a July agreement to boost output by 400,000 bpd per month starting August, an increment that will add a total of 2 million barrels per day by the yearend.
S&P Global Platts assessed Dated Brent at $82.75/b on Nov. 5, a retreat from three-year highs of above $85 per barrel in October, but still up 64% year to date.