Oil sinks following OPEC+ meet
Oil prices dropped on Tuesday following the Organization of Petroleum Exporting Countries and allies’ (OPEC+) agreement to retain its policy of slowly boosting the market’s supply at a time when COVID-19 cases around the world are on the rise. At the same time, several US refiners, a major source of crude demand, remained offline.
Brent crude slipped 0.2%, or 16 cents, at $71.43 a barrel by 0422 GMT, following its 4-cent drop on Wednesday. US oil edged down 0.3%, or 23 cents, to $68.36 a barrel after adding 9 cents in the previous session.
The OPEC+ and other producers in Russia have convened on Wednesday and agreed to sustain its policy of phasing out record production reductions by supplying an additional 400,000 barrels per day (bpd) to the market.
However, the OPEC+ increased its demand forecast for 2022 while simultaneously being pressured to rush production increases by the Biden administration.
In related news, oil refineries in storm-hit Louisiana may take weeks to get back on track, with operators facing shortages in power and water supplies.