Oil down amid tighter market

Oil edged lower on Wednesday in Asia, but West Texas Intermediate (WTI) futures reached their highest level since 2014 as a global energy crunch continues to tighten the crude, natural gas, and coal markets.

Brent futures were also held back by concerns over remaining supply, while the commodity mulled over a decision from the Organization of the Petroleum Exporting Countries and allies (OPEC+) to sustain its planned production boost.

Brent oil futures dropped 0.25% to $82.50 by 12:23 AM ET (4:03 AM GMT) and WTI futures slid 0.13% to $78.83.

On Monday, OPEC+ announced its decision to stand by its initial plan in July to boost output by 400,000 barrels per day (bpd) each month until at least April 2022, without increasing the figure.

The oil group’s technical committee stated in September that it expected a 1.1 million bpd supply deficit in 2021, which could rise to a 1.4 million bpd surplus in 2022.

Across the Pacific, U.S. crude oil supply data showed indications of slowing fuel demand in the world’s second-largest oil importer.

Meanwhile, investors are awaiting crude oil supply data from the U.S. Energy Information Administration due within the day.