The price of Brent crude oil is holding steady at $72 U.S. a barrel after OPEC+ announced plans to boost production in coming months.
Ministers from the Organization of Petroleum Exporting Countries and its allies (OPEC+) have ratified a 400,000 barrel-a-day increase scheduled for October.
In the U.S., a government report showed a growing contraction in nationwide crude inventories, while the nation’s oil infrastructure continues to grapple with Hurricane Ida’s impact.
Crude oil prices have rallied about 40% this year as consumption recovers from the impact of the pandemic, although the majority of the gains came in the year’s first half.
Against that backdrop, OPEC+ has been gradually restoring more of the supply it suspended last year when the global health crisis erupted.
West Texas Intermediate crude oil prices for October delivery is little changed at $68.70 U.S. a barrel in London trading. Brent crude oil for November settlement was 0.2% higher at $71.73 U.S. per barrel.
Most processors that were hit by Hurricane Ida escaped major damage and are expected to be back online within three weeks, according to IHS Markit.
Meanwhile the U.S. government has reported that nationwide crude stockpiles sank by 7.2 million barrels last week to the lowest level in almost two years.
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