Oil gains as OPEC+ ignore calls for output boost

Oil edged higher on Friday in Asia, regaining earlier losses as the Organization of the Petroleum Exporting Countries and allies (OPEC+) snubbed the clamor for increased supply and elected to keep a more gradual return of production.

Brent oil futures jumped 0.97% to $81.32 per barrel by 11:31 PM ET (3:31 AM GMT) after plummeting nearly 2% on Thursday.

U.S. West Texas Intermediate futures soared 1.09% to $79.67, recovering from their 2.5% decline during the previous session.

OPEC+ agreed on Thursday that it would keep its plan of increasing oil production by 400,000 barrels per day (bpd) from December during the cartel’s latest meeting.

Persistent COVID-19 outbreaks were part of the reason for the oil group’s cautious approach, with a global energy shortage also worsening the tightness in the oil market even as some OPEC members’ failure to reach their target output added pressure on crude supply.

OPEC ignored demands from U.S. President Joe Biden for additional output to curb soaring prices.