SULAIMANI (ESTA) — Oil prices fell on Friday after OPEC+ decided to increase production targets by slightly more than planned, although tight global supply and rising demand as China eases COVID restrictions limited the decline.
Brent crude fell 78 cents to $116.8 a barrel by 1116 GMT, after rising $2 intra-day on Thursday.
U.S. West Texas Intermediate (WTI) crude slipped 91 cents to $116 per barrel.
“I believe it’s just a technical move lower after yesterday’s giant post-OPEC+ rally,” Reuters quoted Jeffrey Halley of brokerage OANDA as saying.
“Holidays in China, Hong Kong, Taiwan and the UK are impacting trading volumes.”
Although Brent was on track to fall for the week, U.S. crude was heading for a sixth weekly gain on tight U.S. supply, which has prompted talk of fuel export curbs or a windfall tax on oil and gas producers, Reuters reported.
The Organization of the Petroleum Exporting Countries and allies, or OPEC+, on Thursday increased their output boost to 648,000 barrels per day (bpd) in July and August rather than 432,000 bpd as previously agreed, according to Reuters.
“OPEC+ is still likely to supply considerably less oil to the market than agreed and thus not bring the relief that had been hoped,” Commerzbank analyst Carsten Fritsch said in a report.
