Oil steadies after OPEC+ adds more output on tightening market

Oil steadies after OPEC+ adds more output on tightening market

Oil was steady in Asian trading after OPEC and its allies agreed to a scheduled increase in production for next month, and an industry report pointed to another decline in US crude inventories.

Futures in New York traded near $77 a barrel after rising 2.4% over the past two sessions. OPEC+ stuck to its plan to lift output by 400,000 barrels a day for February after it cut estimates for a surplus in the first quarter. The American Petroleum Institute reported US stockpiles fell by 6.43 million barrels last week, according to people familiar with the data.

Oil has made a positive start to the year as concerns about the hit to demand from the omicron virus variant eased and major economies continue to rebound from the pandemic, although there’s still some uncertainty in China. Earlier this week, the small Chinese city of Yuzhou went into lockdown after a few virus cases, while Xi’an has seen prolonged restrictions after a flare-up.