Oil steadies; OPEC+ sticks to gradual output hikes
Oil prices steadied on Wednesday after OPEC and its allies agreed to stick to their existing policy of gradual oil output increases.
Brent crude fell 4 cents to settle at $71.59 a barrel.
U.S. West Texas Intermediate (WTI) crude rose 9 cents to settle at $68.59 a barrel.
Brent had plumbed a session low of $70.42 a barrel, while WTI fell as low as $67.12 a barrel.
The Organization of the Petroleum Exporting Countries and allies led by Russia, a group known as OPEC+, agreed 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.
Still, the group revised up its 2022 demand outlook and faces U.S. pressure to raise production more quickly.
OPEC+ experts on Tuesday revised the 2022 oil demand growth forecast to 4.2 million bpd, up from a previous 3.28 million bpd, potentially building the case for higher output in future.
The 2022 outlook looks optimistic based on 2021 data. OPEC+ expects demand to grow by 5.95 million bpd after a record drop of about 9 million bpd in 2020 due to the pandemic, but demand only rose by some 3 million bpd in the first half of 2021.
The next OPEC+ meeting is scheduled for Oct. 4.
Reference: CNBC, Reuters
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