Oil falls; OPEC+ expected to stick to gradual output hikes

0
285
imageCommodities5 minutes ago (Sep 01, 2021 16:56)

© Reuters. FILE PHOTO: Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, U.S., March 24, 2016. REUTERS/Nick Oxford

By Stephanie Kelly

NEW YORK (Reuters) -Oil prices fell on Wednesday after a source said OPEC+ agreed to stick to its existing plan for gradual oil output hikes.

Brent crude fell 56 cents to $71.07 a barrel by 11:35 a.m. EDT (1535 GMT). U.S. West Texas Intermediate (WTI) crude fell 59 cents to $67.91 a barrel.

The Organization of the Petroleum Exporting Countries and allies led by Russia, a group known as OPEC+, agreed on Wednesday to stick to a policy from July of phasing out record output cuts by adding 400,000 barrels per day (bpd) a month to the market, an OPEC+ source said.

Still, the group revised up its 2022 demand outlook and faces U.S. pressure to raise production more quickly, Reuters earlier reported.

OPEC+ has fulfilled a goal of removing excess oil from the global market and it is now important to keep the market balanced, Russia’s top negotiator, Alexander Novak, said.

In the United States, gasoline stocks rose by 1.3 million barrels last week, the Energy Information Administration said on Wednesday. Analysts had expected a 1.6 million-barrel drop. Rising coronavirus infections could curtail demand in the United States in coming weeks, along with seasonal declines typical after summer driving season wanes.​

“The gasoline build came as Tropical Storm Henry shut traffic on the East Coast which was a big hit to summer driving season,” said Bob Yawger, director of energy futures at Mizuho in New York.

The jump in gasoline inventories came even as product supplied, a measure of demand, topped 22 million bpd for the first time ever, EIA said.

U.S. crude inventories fell by 7.2 million barrels last week to 425.4 million barrels. Analysts had expected a 3.1 million-barrel drop.

U.S. crude prices are expected to remain under pressure as offshore oil and gas production in the Gulf of Mexico gradually recovers. However, reviving Louisiana refineries shut by Hurricane Ida could take weeks, analysts said.

Oil falls; OPEC+ expected to stick to gradual output hikes

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

LEAVE A REPLY

Please enter your comment!
Please enter your name here