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Oil Down, OPEC+ Decides on Supply Increase Even as COVID-19 Cases Continue to Rise

Published 04/27/2021, 11:35 PM
Updated 04/27/2021, 11:47 PM
© Reuters.

By Gina Lee – Oil was down Wednesday morning in Asia, as investors digested an Organization of the Petroleum Exporting Countries and its allies (OPEC+) decision to increase crude oil supply. The cartel’s decision comes as the surge of COVID-19 cases in countries including India continues to cast a shadow over fuel demand.

Brent oil futures inched down 0.09% to $65.81 by 11:34 PM ET (11:34 AM GMT) and WTI futures inched down 0.02% to $62.93.

OPEC+'s Joint Ministerial Monitoring Committee agreed on Tuesday to increase global crude oil supply from May onwards after revising its demand growth forecasts for 2021 the day before. British oil and gas company BP (NYSE:BP) Plc. also expects a strong recovery for the market.

OPEC+ will reportedly skip its scheduled full ministerial meeting, due to have taken place later in the day, after announcing its decision and will next meet on Jun. 1.

Crude oil demand is reportedly set to record its biggest climb in the next six months due to increased COVID-19 vaccination rates in Europe.

Meanwhile, the flare-up of COVID-19 cases globally, including in India and Brazil, continues to raise concerns over near-term demand.

“Oil demand has yet to recover to pre-virus levels and we see room for further tightening of the oil supply balance in the second half,” Howie Lee, economist at Oversea-Chinese Banking Corp., told Bloomberg.

“The biggest swing driver for oil right now is the state of the COVID-19 outbreak in India,” Lee added.

Also on the supply side, U.S. crude oil supply data from the American Petroleum Institute showed a build of 4.319 million barrels for the week ending Apr. 23. Forecasts prepared by predicted a 375,000-barrel build, while a 436,000-barrel build was recorded during the previous week.

Investors await crude oil supply data from the U.S. Energy Information Administration, due later in the day.

Latest comments

how'd that work out for you???? should be fired.
up 1% how bout them apples
63.14 Gina. up 20 cents.... better write another
down .04 cents now... lets just go ahead and retitle it "oil crashes" or "oil plummets". seems fitting right? spread fear and panic so the minnows sell cheap to the whales, then inspire hope so the minnows buy it back higher from the whales. rinse and repeat!!!!
also "oil down" but at the time this was written its actually green...... cmon Gina.... wti crude is slightly green as this is written. not red. not down. are you predicting or manipulating?
green by .02 at time of article. not exactly up but not down either. should've said oil flat....
now its down .03. a few more paragraphs and it's surely red tomorrow. i understand the need for volatility so that this site and its funders can profit but let's atleast try to remain unbias. i dont even trade oil btw.... never have... not once... options on oil companies- yes about 10% of what i trade. just wish for once the media in general would stop openly trying to manipulate the masses!!!!
no no no... sounds like someone was holding puts... aka the author. India was already at odds with saudi/opec. they also normally put 600 people on a single bus or 50 on a scooter. here in orlando fl gas is up 25% in the last month due to demand. record setting year for vacation rentals.... traffic is worse than ever before. noone cares about india or Germany. combine that with Bidens plan which will actually increase oil demands and you're set to see 70+ this summer.furthermore Brazil has never had the covid crisis the united States has had. Trump shouldn't have closed the borders and Biden should open them now that Americans are vaccinated. 6 in 6.8 billion randomly got a clot and they did their best to scare ppl off. yet here in orlando i received my 2nd dose of Pfizer almost 2 weeks ago and my kids have gone to school all year as normal.quit spreading lies!
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