Oil prices have passed the $80 mark after the OPEC meeting

The OPEC+ meeting ended yesterday, the outcome of which was the decision to maintain the plan to increase oil production by 400 thousand barrels per day in February. Such a decision was made even despite forecasts of a surplus in the market and the spread of a new strain of omicron coronavirus.

After that, Brent quotes jumped sharply to $80.40 per barrel, and a barrel of North American WTI oil rose to $77.30. Today, on Wednesday, the commodity asset remains stable above the important level of $80. 

The increase in OPEC+ supply can be regarded as a signal that the alliance is still confident in further demand growth, despite some restrictions due to the new strain. Scientists report that omicron is less contagious and dangerous than its predecessors, so its negative impact on demand turned out to be short-lived. 

However, the main risks for the oil market are still related to the supply prospects, some experts believe. In particular, geopolitical tensions between Russia and Ukraine increase the likelihood that Moscow may reduce exports of natural gas and oil to Europe.

Also, do not forget about the possible lifting of sanctions against Iran, whose oil in this case will return to the market and, possibly, will put downward pressure on prices.

Tonight, attention should be paid to the release of data from the US Department of Energy on crude oil reserves in the country. It is expected that reserves will decrease by 4.4 million barrels, which may provide additional support to the prices of «black gold».