# Oil prices take a breather, OPEC+ sticks to output plans Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-02-03 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Oil Prices Slip Amid Weak US Payrolls Data and Profit-Taking Meta Description: Discover how weak US payrolls data and OPEC+ output moves are affecting oil prices. Stay up-to-date with analysis and expert opinions from the market. URL: https://financedigest.com/oil-prices-take-a-breather-opec-sticks-to-output-planshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-02-03t033653z3lynxmpei1201nrtroptp4global-oil-1-1736816271541-compressed.jpg) By Roslan Khasawneh SINGAPORE (Reuters) -Oil prices eased on Thursday following weak U.S. payrolls data and some profit taking, but remained underpinned by [tight supply](https://www.financedigest.com/ceraweek-europe-gas-supplies-to-stay-tight-2-more-winters-equinor-ceo-says.html "CERAWEEK-Europe gas supplies to stay tight 2 more winters, Equinor CEO says") as OPEC+ producers stuck to planned moderate output increases. Brent crude fell 17 cents, or 0.2%, to $89.30 a barrel by 0420 GMT, after rising 31 cents on Wednesday. U.S. West Texas Intermediate crude was down 31 cents, or 0.4%, at $87.95 a barrel, having [gained 6 cents the previous day](https://www.financedigest.com/sterling-snaps-four-day-drop-but-gilt-market-havoc-tempers-gains.html "Sterling snaps four-day drop, but gilt-market havoc tempers gains"). “This morning’s dip might be a result of the shockingly low U.S. ADP employment print last night, but we believe the supply squeeze may drive [oil prices](https://www.financedigest.com/oil-ticks-up-as-u-s-inflation-cools-but-prices-set-for-monthly-drop.html "Oil ticks up as U.S. inflation cools, but prices set for monthly drop") higher through this year,” said Howie Lee, economist at OCBC in Singapore. U.S. private payrolls fell for the first time in a year in January, raising the [risk of a sharp decline in employment that would deal a temporary setback to the labour market](https://www.financedigest.com/german-residential-property-market-faces-risk-of-price-drop-diw-study.html "German residential property market faces risk of price drop – DIW study"). Still, tight global supplies and geopolitical tensions in Eastern [Europe and the Middle East have boosted oil prices](https://www.financedigest.com/tesla-expands-discounts-with-price-cuts-in-europe-singapore-israel.html "Tesla expands discounts with price cuts in Europe, Singapore, Israel") by about 15% so far this year. Over the past week, [crude benchmarks hit their highest prices](https://www.financedigest.com/oil-prices-dip-on-u-s-crude-reserve-release-inflation-pressure.html "Oil prices dip on U.S. crude reserve release, inflation pressure") since October 2014, with U.S. [crude rising](https://www.financedigest.com/oil-rises-on-strong-crude-demand-despite-china-fears.html "Oil rises on strong crude demand, despite China fears") to as much as $89.72 on Wednesday and Brent touching $91.70 on Friday. [Prices were also pressured late on Wednesday after Iran’s Oil](https://www.financedigest.com/oil-prices-rebound-after-opec-upgrades-china-demand-outlook.html "Oil prices rebound after OPEC upgrades China demand outlook") Minister said the country was ready to return to the oil market as quickly as possible, but offered few details. The [oil market is not really any closer to seeing](https://www.financedigest.com/in-u-turn-iea-sees-world-weathering-lost-russian-oil-supply.html "In U-turn, IEA sees world weathering lost Russian oil supply") additional barrels of crude, but today we are not seeing any fresh catalysts to send prices to fresh highs,” said Edward Moya, senior market analyst at OANDA. The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, agreed on Wednesday to stick to moderate rises of 400,000 barrels per day (bpd) in its [oil output](https://www.financedigest.com/uk-oil-gas-firms-to-leave-years-worth-of-output-in-ground-with-tax-hikes-report.html "UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report") with the group already struggling to meet existing targets and despite pressure from top consumers to raise output more quickly. OPEC+ will save larger-than-expected [production promises for when oil](https://www.financedigest.com/best-paying-jobs-in-oil-and-gas-production.html "Best Paying Jobs in Oil And Gas Production") is over $100 a barrel,” said Moya. The group blamed [surging prices](https://www.financedigest.com/explainer-oil-price-surge-changes-ecb-narrative-only-at-the-margins.html "Explainer-Oil price surge changes ECB narrative only at the margins") on the failure of consuming nations to ensure adequate investment in fossil fuels as they shift to greener energy, while several OPEC+ sources also said prices had been pushed up by Russia-U.S. tensions. The OPEC+ Joint Technical Committee said in a report that it expects the overall surplus in 2022 to reach 1.3 million bpd, [slightly less than its previous forecast](https://www.financedigest.com/german-govt-to-slightly-raise-2023-gdp-forecast-sources.html "German govt to slightly raise 2023 GDP forecast – sources") of 1.4 million bpd. U.S. crude stockpiles fell by 1 million barrels last week, the U.S. Energy Information Administration said on Wednesday, against expectations for an increase, while distillate inventories also dropped amid strong [demand both domestically and in export](https://www.financedigest.com/turkeys-economy-grew-7-6-in-q2-driven-by-domestic-demand-exports.html "Turkey’s economy grew 7.6% in Q2 driven by domestic demand, exports") markets. \[EIA/S\] [Keeping a floor on prices](https://www.financedigest.com/oil-prices-rise-after-opec-keeps-output-steady-russian-price-cap-imposed.html "Oil prices rise after OPEC+ keeps output steady, Russian price cap imposed"), a major winter storm is expected to wallop much of the central United States and stretch to parts of the Northeast this week, bringing heavy snow, freezing rain and ice, the National Weather Service said. The storm comes days after a deadly winter blast and could boost [prices of oil](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors"), especially as some regions substitute out natural gas where supply may be scarce. (Reporting by Roslan Khasawneh; editing by Richard Pullin) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---