LONDON (Reuters), OPEC and its allies will meet for two days on Wednesday, to discuss whether they want to increase oil supply or reduce it. This comes amid a rout in oil prices and concerns that the Omicron coronavirus variant might weaken global energy demand.

Prices for oil fell from $86 to $86 on October and reached $70 per barrel Tuesday. This was their largest monthly drop since the outbreak of the pandemic.

WTI dropped 20.8% in November. This is the largest monthly drop since March 2020.

Louise Dickson (senior oil market analyst, Rystad Energy) stated that the threat to oil demand was real. A third wave of lockdowns may result in a loss of up to 3,000,000 barrels per day (bpd) in oil demand in the first quarter 2022.

Jerome Powell of the Federal Reserve chair said prices were being pressured by Powell’s comments that it is likely that the U.S. central banks will speed up its sale of bonds amid strong economic conditions and expectation for an increase in inflation.

After 1300 GMT on Wednesday, the Organization of the Petroleum Exporting Countries will be meeting. Then, a meeting of OPEC+ on Thursday, where OPEC is grouped with its allies, including Russia, will take place.

Several OPEC+ ministers including those from Russia and Saudi Arabia have indicated that they do not need to react with a knee-jerk response.

Some analysts suggest that OPEC+ could put off plans to produce 400,000 barrels of oil per day (bpd), to meet demand in January.

Already, the group was weighing the impact of the United States’ and other nations’ announcement last week to reduce energy prices by releasing emergency crude oil reserves.

OPEC+ continues to reduce record levels of supply, with a total of 3.8 millions bpd.

A Reuters survey revealed that the November increase in OPEC oil production has undercut plans for a deal to improve it.