Oil settles higher despite Opec+ output hike plan: Al Attiyah Foundation – The Peninsula

Oil settles higher despite Opec+ output hike plan: Al Attiyah Foundation – The Peninsula

Doha: Oil settled higher on Friday, supported by expectations that Opec’s decision to increase production targets by slightly more than planned will not add that much to global supply which should tighten as China eases COVID-19 restrictions.

The Organization of the Petroleum Exporting Countries and allies, known as Opec+, on Thursday agreed to boost output by 648,000 barrels per day (bpd) in July and August rather than 432,000 bpd as previously agreed. The output hike could undershoot the pledged amount since Opec+ divided the increase across its members and still included Russia, whose output is falling as sanctions have prompted some countries to avoid buying its oil since the invasion of Ukraine. Brent crude rose $2.11, to settle at $119.72 a barrel. US West Texas Intermediate crude advanced $2, to $118.87. Both benchmarks were up by $3 in after hours trading.

Meanwhile, a US weekly inventory report showed crude stockpiles fell by a more-than-expected 5.1 million barrels. Gasoline inventories also dropped. Demand is also rising as China’s financial hub Shanghai and capital, Beijing, have relaxed COVID-19 restrictions and the Chinese government has vowed to stimulate the economy.

Asian spot liquefied natural gas prices were up last week on continued demand growth from Japan,