Oil up ahead of OPEC+ meet
Oil climbed up on Wednesday in Asia ahead of an Organization of Petroleum Exporting Countries and allies (OPEC+) meeting. Investors are waiting for the oil group’s decision on whether to retain its supply plan while mulling over the rising numbers of COVID-19 cases in Asia and the recent hurricane’s damage in the Gulf of Mexico.
Brent oil futures edged up 0.68% to $72.12 by 11:58 PM ET (3:58 AM GMT) and WTI futures jumped 0.73% to $69.
The OPEC+ will meet later in the day to ascertain whether to follow through with its plan to increase supply by 400,000 barrels per day (bpd) each month until December 2021. With the market forecast to be in deficit until the end of the year, the group is not likely to change its course in spite of pressure from the US to further increase production.
Meanwhile, 94% of oil and natural gas production remains on hold in the US side of the Gulf of Mexico, following Hurricane Ida’s landfall over the weekend.
US crude oil supply data from the American Petroleum Institute on Tuesday showed a draw of 4.045 million barrels for the week ending August 27.
Investors are now waiting for crude oil supply data from the US Energy Information Administration, due within the day.