New York (Reuters) – A source in OPEC+ The Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, the group known as OPEC+, agreed today to commit from July to a gradual end to record production cuts by adding 400,000 barrels per day each month to the market.
However, the group revised up its demand forecast for 2022, as Reuters previously reported.
Russia’s chief negotiator, Alexander Novak, said that OPEC + had achieved the goal of removing excess oil from the global market, and it was now important to maintain market balance.
KUNA quoted Kuwaiti Oil Minister Muhammad Abdul Latif Al-Faris as saying that the “prudent and balanced” OPEC + administration was able to support the global oil industry during the Covid-19 crisis. He added that OPEC + is keen to provide the markets with sufficient supplies, and its efforts have succeeded in restoring balance and stability to the global economy.
Oil prices fell on Wednesday after the OPEC+ meeting, and Brent crude fell 56 cents to $71.07 a barrel by 15:35 GMT. US West Texas Intermediate crude fell 59 cents to $67.91 a barrel.
On the other hand, the Energy Information Administration said today that gasoline stocks in the United States rose by 1.3 million barrels last week. Analysts had expected a decline of 1.6 million barrels. A surge in coronavirus infections could dampen US demand in the coming weeks, on top of the usual seasonal declines after the summer driving season subsides.
“The increase in gasoline came as Tropical Storm Henry closed East Coast traffic, which was a major blow to the summer driving season,” said Bob Yoger, director of energy futures in Mizuho, New York.
The Energy Information Administration said the jump in gasoline stocks came even as supplies of petroleum products, a measure of demand, exceeded 22 million barrels per day for the first time ever.
US crude stocks fell 7.2 million barrels last week to 425.4 million barrels. Analysts had expected a decline of 3.1 million barrels.
US crude prices are expected to remain under pressure as offshore oil and gas production in the Gulf of Mexico gradually recovers. But analysts said it could take weeks for refineries in Louisiana that were shut down by Hurricane Ida to resume operations.