Oil prices rose on Wednesday towards seven-year highs hit last week, with a drop in US crude inventories, confirming strong demand and tight supply. However, investors remained cautious ahead of the OPEC+ meeting scheduled for later in the day.
Brent crude was up US$0.01 (R$0.05), or 0.01%, to US$89.17 (R$469) a barrel at 8:25 am (Brasilia time).
US crude advanced $0.12 (R$0.63), or 0.14%, at $88.32 (R$464) a barrel.
Tight global supply and geopolitical tensions in Eastern Europe and the Middle East have boosted oil prices by around 15% so far this year. On Friday (28), oil benchmarks reached their highest prices since October 2014, with Brent reaching US$ 91.70 (R$ 482) and US oil reaching US$ 88.84 (R$ 88.84). 467).
“I think the (OPEC+) 400,000 bpd increase is priced in, which judging by recent compliance numbers will be less than that due to production constraints,” said Tamas Varga, an analyst at PVM Oil Associates. , adding that cold weather in the United States should also support prices.
U.S. crude inventories fell by 1.6 million barrels in the week ended Jan. thursday (1).
But gasoline inventories rose 5.8 million barrels, above analysts’ expectations for an increase of 1.6 million barrels.
OPEC+ maintains planned output increase despite rising prices, sources say
OPEC+ decided on Wednesday (2) to maintain moderate increases in its oil production, two sources in the group said, despite pressure from major consumers for a greater increase in supply after prices of the commodity hit seven-year highs.
The Organization of Petroleum Exporting Countries and allies led by Russia — a group known as OPEC+, which produces more than 40% of the global oil supply — have faced calls from the United States, India and others to pump more oil as economies tighten. recover from the pandemic.
But OPEC+ stuck to its target of monthly increases of 400,000 bpd (barrels per day) and justified the rise in oil prices on the failure of consuming nations to secure adequate investment in fossil fuels as they shift to greener energy.
Several OPEC+ sources also said prices were pressured by US-Russian tensions. Washington has accused Moscow of planning to invade Ukraine, which Russia denies.
Increases in oil production are complicated by the fact that several OPEC members have struggled to meet current monthly targets and have no idle capacity to increase production further.
Brent crude traded above $90 a barrel on Wednesday and hit a seven-year high of $91.70 last week, amid tensions in Europe and the Middle East. .
A report prepared for the meeting by OPEC+ experts and seen by Reuters kept the world oil demand growth forecast for 2022 unchanged at 4.2 million bpd and said consumption would reach pre-pandemic levels in the second half of the year. .
Oil demand was slightly above 100 million bpd in 2019, but was hampered by the pandemic in 2020.
Source: Folha
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