Oil down, OPEC + decides to increase supply despite COVID-19 cases continuing to rise By Investing.com

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By Gina Lee Investing.com – Oil slumped in Asia on Wednesday morning as investors assimilated an Organization of the Petroleum Exporting Countries and its allies (OPEC +). The cartel’s decision comes as the surge in COVID-19 cases in countries like India continues to overshadow demand for fuel. It was down 0.09% to $ 65.81 at 11:34 PM ET (11:34 AM GMT) and was down 0.02% at $ 62.93. The OPEC + Joint Ministerial Monitoring Committee agreed on Tuesday to increase global crude oil supply starting in May after reviewing its 2021 demand growth forecasts the day before. British oil and gas company BP (NYSE 🙂 Plc. A strong market recovery is also expected. OPEC + will reportedly skip its full scheduled ministerial meeting, which is due to take place later in the day, after announcing its decision and will meet on June 1. Demand for crude oil is reportedly set to record its biggest increase in the next six months due to rising COVID-19 vaccination rates in Europe. Meanwhile, the upsurge in COVID-19 cases globally, including in India and Brazil, continues to raise concerns about short-term demand. “Oil demand has yet to recover to pre-virus levels and we see room for further adjustment of the oil supply balance in the second half,” Howie Lee, an economist at Oversea-Chinese Banking Corp., told Bloomberg. “The biggest deciding factor for oil right now is the status of the COVID-19 outbreak in India,” added Lee. Also on the supply side, it showed an accumulation of 4.319 million barrels for the week ended April 23. Forecasts prepared by Investing.com predicted a build-up of 375,000 barrels, while the previous week posted a build of 436,000 barrels. Investors wait, which expire later in the day.

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