| At 10:05 am Singapore time (0205 GMT), the ICE March Brent futures contract was down 27 cents/b (0.34%) from the previous close at $79.73/b, while the NYMEX February light sweet crude contract was down 24 cents/b (0.31%) at $76.75/b.
OPEC and its Russia-led partners Jan. 4 approved another hike in production quotas, betting the market can absorb more oil in the coming months despite surging COVID-19 infections worldwide. In affirming a 400,000 b/d output increase for February on Jan. 4, the OPEC+ alliance signalled continued confidence that the omicron variant will have a smaller impact on global oil demand than previously assumed. “There were no surprises from OPEC+ yesterday. The move provides some comfort to the market as it signals that they are confident with the demand outlook in the coming months. As a result, Brent managed to settle at $80/b yesterday, the highest level since late November,” ING analysts Warren Patterson and Wenyu Yao said in a Jan. 5 note. (S&P Global Platts)
Oil was steady in Asian trading after OPEC and its allies agreed to a scheduled increase in production for next month, and an industry report pointed to another decline in U.S. crude inventories. Futures in New York traded near $77 a barrel after rising 2.4% over the past two sessions. OPEC+ stuck to its plan to lift output by 400,000 barrels a day for February after it cut estimates for a surplus in the first quarter. The American Petroleum Institute reported U.S. stockpiles fell by 6.43 million barrels last week, according to people familiar with the data. (Bloomberg)
Sentiment was also weighed by data showing a build in US gasoline stocks last week by 7.06 million barrels, while distillate stocks increased by 4.34 million barrels, according to the American Petroleum Institute, media reports indicated. Overall, the API report was mixed as US crude oil inventories drew by 6.43 million barrels. The United States reported nearly 1 million new coronavirus infections on Monday, the highest daily tally of any country in the world and nearly double the previous U.S. peak set a week ago. (Reuters)
|
