Oil steady ahead of OPEC+ supply decision

Oil steady ahead of OPEC+ supply decision
# 01 September 2021 08:21 (UTC +04:00)

Oil prices were stable on Wednesday ahead of an OPEC+ meeting, at which major producers will decide whether to go ahead with their plan to add supply while COVID-19 cases soar in Asia and U.S. refiners assess flood damage in the wake of Hurricane Ida, APA reports quoting Reuters.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and allies, together called OPEC+, are due to meet on Wednesday at 1500 GMT to decide whether to stick to a plan to add 400,000 barrels per day (bpd) each month through December.

OPEC+ expects the market to be in deficit at last until the end of 2021, OPEC+ sources said.

"This should provide comfort to the group that they can proceed with their planned monthly 400,000 bpd increase in production," ANZ Research analysts said in a note.

OPEC+ sources told Reuters the meeting is likely to roll over existing policies despite pressure from the United States to boost supply further.

U.S. West Texas Intermediate (WTI) crude futures inched up 7 cents, or 0.1%, to $68.57 a barrel at 0125 GMT, after falling 1% on Tuesday on expectations oil demand would drop as six refineries in Louisiana were shut after Hurricane Ida hit.

Brent crude futures were up 5 cents at $71.70 a barrel, after losing 42 cents on Tuesday.

A total of 2.3 million bpd of refining capacity, or 13% of U.S. capacity, was shut in Louisiana due to Hurricane Ida, the U.S. Department of Energy estimated. At the same time, about 94% of oil and natural gas production remained suspended in the U.S. side of the Gulf of Mexico.