Oil prices inched up on Thursday amid skepticism about whether OPEC+ can eventually raise output as much as they intend.
Crude oil futures in New York rose 1.1% to $77.85 before dropping erasing gains to $77.08. OPEC+ on Tuesday maintained its plan to add 400,000 barrels a day next week after the organization cut its estimate for a surplus in the first quarter.
“Outside of Saudi Arabia, OPEC is seeing a challenge in increasing production,” said Matt Sallee, a portfolio manager at Tortoise, as reported by Bloomberg. “The more months we roll forward and OPEC is unable to demonstrate adding 400,000 barrels a day of supply, it could start to spook the market.”
U.S. crude stockpiles added to the worry after Energy Information Administration report on Wednesday showed stockpiles 2.14 million barrels last week. Inventories dropped for a sixth straight week.
“The market is clearly concentrating on the price supportive news,” said Barbara Lambrecht, an energy analyst at Commerzbank said to Bloomberg. “Whether the optimism will suffice to ignore the looming supply surplus in any lasting fashion will presumably depend chiefly on the omicron wave.”
