LONDON • Opec+ expects the impact on the oil market from the Omicron coronavirus variant to be mild and temporary, keeping the door open for a further increase in output, a technical report seen by Reuters showed on Sunday .

"The impact of the new Omicron variant is expected to be mild and short-lived, as the world becomes better equipped to manage Covid-19 and its related challenges," the joint technical committee (JTC) report said.

"This is in addition to a steady economic outlook in both the advanced and emerging economies," it added.

The Organisation of the Petroleum Exporting Countries (Opec) was scheduled to meet yesterday at 1300 GMT (9pm Singapore time) to discuss the appointment of a new secretary-general to succeed Nigeria's Mr Mohammad Barkindo, according to a letter seen by Reuters.

This will be followed by a meeting today of Opec and allies led by Russia, known as Opec+, to debate whether to go ahead with raising output targets by 400,000 barrels per day (bpd) next month.

The JTC was also meeting at 1000 GMT yesterday to discuss market fundamentals.

In the report's base scenario, OECD commercial oil stocks this year will remain below the 2015-2019 average in the first three quarters and rising above that average by 24 million barrels in the fourth quarter. OECD is the Organisation for Economic Co-operation and Development, which has 38 member countries spanning the globe, from North and South America to Europe and Asia-Pacific.

The scenario assumes that 40 million barrels are released from strategic petroleum reserves in the first half of the year, and that 13.3 million barrels are returned to the United States' strategic reserve in the third quarter.

The report kept forecasts for the growth in oil demand last year and this year unchanged at 5.7 million bpd and 4.2 million bpd, respectively.

REUTERS