# Oil dips; OPEC+ sticks to gradual output hikes
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-09-01
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: OPEC and allies maintain gradual oil output increase policy
Meta Description: Stay updated on oil price fluctuations as OPEC and allies agree on gradual output increases. Discover market insights and projections.
URL: https://financedigest.com/oil-dips-opec-sticks-to-gradual-output-hikeshtml

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By Stephanie Kelly

NEW YORK (Reuters) -Oil prices steadied on Wednesday after OPEC and its allies agreed to stick to their existing policy of gradual oil output increases.

Brent crude fell 4 cents to settle at $71.59 a [barrel.](https://www.financedigest.com/oil-rises-on-slim-progress-in-gaza-peace-talks-weaker-dollar.html) U.S. West Texas Intermediate (WTI) crude rose 9 cents to settle at $68.59 a barrel.

Brent had plumbed a session low of $70.42 a barrel, while WTI fell as low as $67.12 a barrel.

The Organization of the Petroleum Exporting Countries and allies led by Russia, a group known as OPEC+, agreed to stick to a policy from [July of phasing out record output](https://www.financedigest.com/toyotas-july-global-vehicle-output-drops-again-puts-annual-target-in-doubt.html "Toyota’s July global vehicle output drops again, puts annual target in doubt") cuts by adding 400,000 barrels per day (bpd) a month to the market. \[nL1N2Q30F8\]

Still, the group revised up its 2022 [demand outlook](https://www.financedigest.com/oil-prices-slip-on-cloudy-demand-outlook-but-poised-for-weekly-gain.html "Oil prices slip on cloudy demand outlook, but poised for weekly gain") and faces U.S. pressure to raise production more quickly.

While the effects of the COVID-19 pandemic continue to cast some uncertainty, market fundamentals have strengthened and OECD [stocks continue to fall](https://www.financedigest.com/oil-dips-as-potential-fed-rate-hike-overshadows-falling-stocks.html "Oil dips as potential Fed rate hike overshadows falling stocks") as the recovery accelerates,” OPEC+ said in a statement.

OPEC+ has fulfilled a goal of removing excess [oil from the global](https://www.financedigest.com/global-stocks-close-in-on-4-week-highs-oil-rises-on-hopes-of-soft-landing.html "Global stocks close in on 4-week highs, oil rises on hopes of ‘soft landing’") market and it is important to keep the market balanced, said Russia’s top negotiator, Alexander Novak.

U.S. gasoline [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks") rose by 1.3 million barrels last week, the Energy Information Administration said. Analysts had expected a 1.6 million-barrel drop. [Rising coronavirus infections could curtail demand](https://www.financedigest.com/oil-rises-on-tight-supplies-trade-choppy-on-demand-worries.html "Oil rises on tight supplies; trade choppy on demand worries") in the United States in coming weeks, along with seasonal declines after summer driving season wanes.

The gasoline build came as Tropical Storm Henry shut traffic on the East Coast which was a big hit to summer driving season,” said Bob Yawger, director of [energy futures](https://www.financedigest.com/the-future-of-finance-in-the-energy-industry.html "The future of finance in the energy industry") at Mizuho in New York.

The [jump in gasoline inventories came even as product](https://www.financedigest.com/itv-shares-jump-on-reports-it-could-sell-stake-in-production-arm.html "ITV shares jump on reports it could sell stake in production arm") supplied, a measure of demand, topped 22 million bpd for the first time ever, EIA said.

U.S. [crude](https://www.financedigest.com/shell-to-shut-in-portions-of-louisiana-zydeco-oil-pipeline-for-maintenance.html) inventories fell by 7.2 million barrels last week to 425.4 million barrels. Analysts had expected a 3.1 million-barrel drop.

U.S. [crude prices are expected to remain under pressure as offshore oil](https://www.financedigest.com/oil-dips-after-fed-comments-us-crude-stock-build.html "Oil dips after Fed comments, US crude stock build") and gas production in the Gulf of Mexico gradually recovers. However, reviving Louisiana [refineries shut](https://www.financedigest.com/most-of-bps-whiting-refinery-units-shut-following-fire-sources.html "Most of BP’s Whiting refinery units shut following fire -sources") by Hurricane Ida could take weeks, analysts said.

(Reporting by Stephanie Kelly in New York; [Additional reporting by Noah Browning](https://www.financedigest.com/tailify-bolsters-leadership-team-with-addition-of-julia-burton-brown-as-commercial-director.html "Tailify bolsters leadership team with addition of Julia Burton Brown as Commercial Director") in London, Florence Tan in Singapore and Sonali Paul in MelbourneEditing by Edmund Blair, David Goodman and David Gregorio)


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