Despite the slow increase in OPEC supply, oil prices are receding as US commodities improve

By David Coffin

NEW YORK (Reuters) – OPEC plans to maintain a planned approach to supply to the market, but oil prices fell on Wednesday after U.S. commodity stocks rose higher than expected.

U.S. oil cargo rose 4.6 million barrels last week, surpassing expectations, recovery in production increased, maritime facilities closed by two hurricanes in the U.S. Gulf and resumed operations.

After crossing $ 80 on Tuesday, Brent crude was down $ 0.45 at $ 78.64 a barrel. U.S. oil prices fell $ 0.46 or 0.6% to $ 74.83 a barrel.

Oil prices are further stabilized as economies recover from epidemic locks and demand for fuel increases, while some oil-producing countries have seen supply disruptions.

U.S. oil, gasoline and distillation stocks rose last week, according to the U.S. Department of Energy. U.S. production increased to 11.1 million barrels a day in line with production before Hurricane Ida hit about a month ago.

“Production is coming back, but that’s not where it should be,” said Phil Flynn, trader for Price Futures Group.

The Organization of the Petroleum Exporting Countries (OPEC +) and its allies, including Russia, are likely to maintain an existing agreement to add 400,000 barrels a day (bpd) to their production when they meet next week in November, sources say, despite increased consumer pressure.

(Reported by Aaron Sheldrick)