Opec+ is monitoring developments around the new coronavirus variant, sources said, and is inclined to ditch its plan to raise output next week.

The 23-nation group led by Saudi Arabia is leaning toward abandoning a plan for a modest production hike scheduled for January when it meets on December 1 to 2.

The group was already considering a pause after the US and other consumers announced the release of emergency oil stockpiles on Monday.

The Opec is under pressure from the United States to release more oil stocks as part of an effort to cool prices.

However, a source said Russia, a key Opec+ member, was not concerned about the virus variant yet.

Opec+ has resisted US calls to do more to lower oil prices, continuing to unwind last year’s record output curbs by adding 400,000 barrels of supply per day every month since August.

Global authorities reacted with alarm to news of the B.1.1.529 variant, with the EU, Britain and India among those announcing stricter border controls.

Oil plunged more than 10 per cent, the largest one-day drop since April 2020.

“Not good as it adds bearishness to an already weak outlook,” said an Opec delegate about the new variant, asking not to be identified.

Another said this could be the case, although it was too early to say.

Saudi Arabian energy minister Prince Abdulaziz bin Salman has warned that global crude markets are poised to return to surplus next month, and that demand is at risk from new infections.

Opec’s internal research shows a substantial excess forming early next year, that will only balloon if the US and its associates tap their strategic reserves.

Another Opec delegate, while noting the slide in oil prices on Friday, said it was not yet clear how significant an impact the variant would have.

Oil demand has been recovering and is expected by Opec to return to the pre-pandemic rate of 100 million bpd in 2022.

“I am very concerned,” he said. “There are many unknowns at the moment.”