Oil rises by 1.5% on Tuesday as OPEC+ producers agreed to stick with their planned increase for February based on indications that the Omicron coronavirus variant would have only a mild impact on demand.
Brent crude was up $1.15, or 1.5%, at $80.13 a barrel, its highest since November, by 13:33. p.m. EST (1833 GMT) and U.S. West Texas Intermediate (WTI) crude rose $1 cents, or 1.31%, to $77.09. So what does oil rises?
“The oil market is bullish today as a result of optimism sourced from today’s monthly OPEC+ meeting, which is helping oil prices trade higher,” said Rystad Energy’s head of oil markets, Bjornar Tonhaugen.
OPEC+, comprising of the Organization of the Petroleum Exporting Countries and allies, agreed to stick to its planned increase of 400,000 barrels per day (BPD) in oil output in February.
Its decision reflects easing concerns over a big surplus in the first quarter, as well as a wish to provide consistent guidance to the market.
Crude stockpiles in the United States, the world’s top consumer, were forecast to have dropped for a sixth consecutive week, analysts polled by Reuters estimated ahead of weekly industry data due at 4:30 p.m. EST (2130 GMT), followed by the government’s report on Wednesday.
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Source: Reuters
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