Sign Up for FREE Daily Energy News
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2

Copper Tip Energy Services
Hazloc Heaters
Hazloc Heaters
Copper Tip Energy

Oil Declines as Traders Digest OPEC+ Decision to Add Barrels

English Español 简体中文 हिन्दी Português
These translations are done via Google Translate
(Bloomberg) Oil retreated as traders waited to see whether OPEC+ can deliver on its latest promised increase in supply, while stock markets fell.West Texas Intermediate slid 1.4% after nearing $90 Wednesday, dragged down in part by softer risk sentiment in equities. While the Organization of Petroleum Exporting Countries and its allies agreed midweek to a further lift in output, traders are doubtful that all members will be able to meet their quotas in full.Crude is still heading for a seventh weekly gain, with banks including Goldman Sachs Group Inc. seeing oil moving toward $100 a barrel. The rally has been underpinned by rising demand, low stockpiles and interruptions to supply. High levels of backwardation in the futures curve continue to signal a tight market.

With oil and gas prices near multiyear highs, supermajor Shell Plc unveiled a bumper set of fourth-quarter earnings on Thursday that comfortably exceeded analysts’ estimates. At the same time, it kept a tight lid on capital spending.

Data from the U.S. on Wednesday showed nationwide crude inventories fell 1.05 million barrels last week. Oil’s decline after the numbers were released — and OPEC+ decided on output — “tells me the market is running out of steam and momentum,” said Ole Hansen, head of commodities strategy at Saxo Bank. “If that’s the case, the elevated backwardation should start to come down.”

  • WTI for March delivery fell 1.4% to $87.04 a barrel at 10:51 a.m. London time.
  • Brent for April settlement dropped 1.3% to $88.30.

Investors continue to track developments over Ukraine amid concerns that Russia may invade, even though Moscow has said it has no such plan. An attack carries the potential to upend energy flows, stoking prices. Oil historian Daniel Yergin said further escalation over Ukraine could send prices to $100 a barrel.


There are tensions in the Middle East, too. The United Arab Emirates said three hostile drones that entered its airspace on Wednesday had been intercepted, days after it fended off a missile attack by fighters based in Yemen.

Related coverage:
  • Vitol Group, the world’s largest independent oil trader, is partnering with shale specialists to expand U.S. output.
  • The biggest commodities exchange-traded fund pulled in record amounts of cash in January as the rocketing value of raw materials lured investors spooked by inflation concerns.
  • U.S. demand for distillates, which include heating oil and diesel, hit a three-year high in late January.

Share This:

More News Articles