FX.co ★ Oil is down 12%. Forecast say surplus will grow by 1.1 million b/d in 2022

Saudi Arabia and Russia are reportedly planning to suspend their planned production increases, after the US and other energy-consuming countries said they would tap on their strategic reserves to lower gas prices. This is because OPEC believes that releasing oil reserves will boost supply on world markets.

And over the past 3 weeks, oil has already declined by 12%.

OPEC relayed their projections a week before their next meeting for oil production.

Several delegates said they would reconstruct their plans for January if stocks halt in the US, but soared elsewhere.

Bloomberg also gave a forecast that there may be a surplus of roughly 1.1 million b/d in 2022 in the new year, 2.3 million in January and 3.7 million in February if 66 million barrels of oil are injected within two months.

OPEC members will meet on December 1 and 2 to decide whether to add 400,000 barrels a day in January.