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Oil futures were little changed Wednesday, with investors awaiting a decision from the Organization of the Petroleum Exporting Countries and its allies that’s expected to see producers deliver another 400,000 barrel-a-day rise in production.
West Texas Intermediate crude for March delivery
CL.1,
CLH22,
was down 5 cents, or 0.1%, at $88.15 a barrel on the New York Mercantile Exchange. April Brent crude
BRN00,
BRNJ22,
the global benchmark, fell 19 cents, or 0.2%, to $88.97 a barrel on ICE Futures Europe.
“As there hasn’t been much talk of any unexpected change in the mind-set of OPEC+, prices aren’t moving much for the moment, with the group expected to ratify another 400,000 barrels per day increase in the collective target production,” said Bjørnar Tonhaugen, head of oil markets at Rystad Energy, in a note.
OPEC+ has been rising output in monthly increments of 400,000 barrels a day since last year, but has struggled to meet the rising quotas. The group has resisted pressure from the U.S. and major oil-consuming countries to more aggressively raise output, though some analysts have argued that a rise in crude prices to seven-year highs could prompt fears of demand destruction, warranting a more aggressive output boost.
In One Chart: Why OPEC+ can’t hit its oil production targets — and what it could do about it
OPEC+ officials were meeting Wednesday morning. Reuters reported that multiple OPEC+ sources had said they expected the group to stick with their timetable and deliver another 400,000 barrel-a-day rise in March.
U.S. inventory data will also be in focus. The American Petroleum Institute reported late Tuesday that U.S. crude supplies fell by 1.6 million barrels for the week ended Jan. 28, according to sources. The API, however, also reportedly showed a weekly inventory climb of 5.8 million barrels for gasoline, while distillate supplies decline by 2.5 million barrels.
Crude stocks at the Cushing, Okla., delivery hub edged down by 1 million barrels last week, sources said. Inventory data from the Energy Information Administration will be released Wednesday.
On average, the EIA is expected to show crude inventories rose by 1.1 million barrels, according to a survey of analysts conducted by S&P Global Platts. The survey also calls for a weekly supply rise of 1.7 million barrels for gasoline and an inventory decrease of 1 million barrels for distillates.
