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Oil Down as OPEC+ Increases February Production and U.S. Gasoline Inventories Surg -Breaking

by Mike Robinson

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© Reuters.

By Gina Lee

Investing.com – Oil was down on Thursday morning in Asia, with a draw in U.S. crude oil supplies smaller than expected. There is still doubt about whether the Organization of the Petroleum Exporting Countries (OPEC+), and its allies, will be able meet their February output increase.

They were at $79.94 (11:17 ET) (3:17 GMT), and down 1.01% (0:07 AM GMT).

Wednesday’s U.S. crude oil supply data from the U.S. Energy Information Administration for the week ended Dec. 31. Investing.com’s forecasts predicted a draw between 3.283 and 3.576 millions, whereas a draw in the prior week was recorded at 3.376 million.

The American Petroleum Institute has released crude oil supply data the previous day.

OPEC+ also agreed Tuesday that it would increase February’s supply by another 400,000 barrels per hour (bpd). Investors aren’t optimistic that the planned output increase will be realized.

“Outside of Saudi Arabia, OPEC is seeing a challenge in increasing production,” Tortoise portfolio manager Matt Sallee told Bloomberg.

“The more months we roll forward and OPEC is unable to demonstrate adding 400,000 barrels a day of supply, it could start to spook the market,” he added.

Adding pressure on oil prices, the minutes from the U.S. Federal Reserve’s December meeting indicated the central bank is likely to interest rates quicker than expected. Asia Pacific:

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