Oil swung between gains and losses after OPEC+ confirmed it would proceed with plans to add more barrels to the market, despite a virus resurgence in some regions clouding the demand outlook. Futures in New York held steady near $63 a barrel, after earlier adding 0.6%. An OPEC+ committee agreed the group should stick to its roadmap for boosting supply in the coming months, reflecting confidence in the prospects for global consumption. But a surge of coronavirus cases in India and Brazil shows the recovery remains uneven.

Oil has struggled for momentum over the last month

Crude prices have risen this year on a global recovery driven by China and the U.S., with positive signs also emerging from parts of Europe. Goldman Sachs Group Inc. is forecasting an unprecedented jump in demand over the next six months as vaccination rates rise, with benchmark Brent crude seen reaching $80 in the third quarter. But virus flare-ups in some regions and prospects for higher supply from OPEC+, including potentially Iran, are tempering optimism.

PRICES
  • West Texas Intermediate for June delivery was little changed at $63.03 a barrel on the New York Mercantile Exchange at 10:11 a.m. London time, after climbing 1.7% on Tuesday
  • Brent for June settlement also held steady, trading at $66.48 on the ICE Futures Europe exchange

The American Petroleum Institute reported a 4.32 million-barrel increase in U.S. crude stockpiles last week, according to people familiar with the data. If confirmed by government figures later on Wednesday, that would be a second weekly gain. The API posted a drop in gasoline inventories.

OTHER OIL-MARKET NEWS:
  • A 900-foot crude tanker leaked oil into the ocean just outside China’s biggest refining center, raising the specter of environmental damage and disruption of shipments.
  • Saudi Arabia’s crown prince said the kingdom is in talks to sell a 1% stake in state oil giant Aramco to a “leading global energy company” as he forecast a rebounding economy in the aftermath of the coronavirus pandemic.