WTI Crude falls as OPEC+ agrees to continue supply return

Commodity Market: US Crude Oil retreats as OPEC+ agrees to continue supply return

Written by Miroslav Marinov

Miroslav Marinov, a financial news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Foreign Exchange Market, as currently his focus is set on the major currencies of eight developed nations worldwide.

, | Updated: October 30, 2024

Futures on US West Texas Intermediate Crude Oil retreated on Thursday after OPEC+ agreed to continue the gradual return of supply to the market amid surging COVID-19 cases globally and with many US oil refiners still offline.

Yesterday the Organization of the Petroleum Exporting Countries and allies, OPEC+, agreed to continue phasing out record output cuts by adding 400,000 barrels per day to the market every month.

On the other hand, the group revised up its oil demand forecast for 2022, while also being pressured by the White House to speed up output increases.

“What is not so certain … is whether demand will be able to grow as quickly as OPEC+ and the market predicts, given the risk of new lockdowns to fight the unresolved Covid-mutant spread,” Bjornar Tonhaugen, head of oil markets at Rystad Energy, wrote in an investor note.

Meanwhile, refineries in Louisiana, US may require weeks to resume operations after Hurricane Ida struck the area, with operators facing shortages of power and water.

Energy firms were straining to restart Gulf platforms and pipelines, as nearly 1.4 million barrels per day of oil output was still offline.

As of 8:39 GMT on Thursday WTI Crude Oil Futures were retreating 0.32% to trade at $68.37 per barrel, while moving within a daily range of $67.84-$68.64 per barrel. WTI Crude Oil Futures have remained mostly flat so far in September, following a 7.37% drop in August.

At the same time, Brent Oil Futures were gaining 0.62% on the day to trade at $71.72 per barrel, while moving within a daily range of $70.94-$71.86 per barrel. Brent Oil Futures have edged up 0.11% so far in September, following a 4.63% drop in August.