OPEC Agrees to Increase Production, Oil Futures Fall.
London, Wednesday, 2 February 2022
On Wednesday, WTI oil futures slipped below $88 per barrel after climbing more than 1% to $89.6 early in the day, but remained close to 2014 levels as investors digested the supply forecast.
OPEC+ agreed to raise oil output by 4 million barrels per day (bpd) in March, in line with market expectations, but traders are sceptical that the cartel will be able to fulfil its own production targets.
Instead of the 400,000 barrels per day that the group agreed to, oil output was increased by 210,000 barrels per day in January.
Meanwhile, Iran's Oil Minister, Javad Owji, stated that Iran is ready to return to the oil market as soon as feasible. US crude stocks declined for the first time in three weeks in late January, according to EIA data, with stocks at Cushing, Oklahoma also declining while gasoline inventories rose.
(Research and editing by: The Decision Maker)