OPEC estimates release of reserves will increase global crude surplus in first quarter

The advisory body of the Organization of the Petroleum Exporting Countries (OPEC) expects a release of crude reserves by the United States and other consuming countries will expand a projected global surplus early next year, Bloomberg reported, citing a document it did not identify.

The OPEC Economic Commission Board projects that the glut in world oil markets would rise by 1.1 million barrels per day to 2.3 million bpd in January and 3.7 million bpd in February if consuming countries delivered on their promised releases. during those months, Bloomberg reported.

The United States said on Tuesday it would release 50 million barrels of oil from strategic reserves in coordination with smaller releases from China, India, South Korea, Japan and Britain, to try to cool prices after OPEC + ignored the orders. to pump more crude.

Some OPEC delegates and their partners have indicated that they could cancel a production increase scheduled for January if inventories deployed by the United States and others overwhelm the market, according to Bloomberg.

OPEC did not immediately respond to a request for comment.