Oil Falls After OPEC + Confirms The Return of Supplies

Oil prices fell after the Organization of the Petroleum Exporting Countries (OPEC) agreed to keep its policy of gradual supply back to the market unchanged as coronavirus cases soar around the world and many US refiners, a major source of crude demand, are out of business.

Brent crude fell 15 cents, or 0.2%, to $71.44 a barrel, after falling four cents on Wednesday. US crude fell 20 cents, or 0.3%, to $68.39 a barrel, after rising nine cents in the previous session.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia, a group known as OPEC+, agreed on Wednesday to continue the policy of phasing out record production cuts by adding 400,000 barrels per day to the market every month.

But OPEC+ raised its forecast for demand in 2022 while also facing pressure to accelerate production increases from the administration of US President Joe Biden, which said it was “happy” that the group reaffirmed its commitment to increasing supplies.

In the United States, oil refineries may take weeks to resume operations after Hurricane Ida hit the region, while operations face power and water cuts, which will likely hinder oil demand.