Africa Business Radio

Major oil producers decided to keep raising output levels in January, despite the Omicron coronavirus variant raising fresh questions over demand. The OPEC+ alliance led by Saudi Arabia and Russia had so far resisted US-led pressure to significantly boost output to rein in surging energy prices. The 13 members of the Vienna-based Organization of Petroleum Exporting Countries and their 10 allies decided to stick with a modest increase in output of 400,000 barrels per day every month, as they have been doing since May. Commodities economist Edward Gardner from Capital Economics says they suspect that the US-led coordinated release of oil reserves was one reason why OPEC+ decided to push ahead with their plan to raise oil output noting that the group might not want to provoke further action from the large oil consumers.