Oil dips below $89 on potential for faster supply boost

Oil slipped on Tuesday from seven-year highs, with prices pressured by speculation that producer group OPEC+ could decide to boost supply by more than flagged previously as well as expectations of a rise in U.S. inventories.

While the Organization of the Petroleum Exporting Countries (OPEC) and allies, together known as OPEC+, has been expected to maintain its policy of gradual production increases at a meeting on Wednesday, Goldman Sachs said there was a chance of further steps.

“We view growing potential for a faster ramp-up at this meeting, given the pace of the recent rally and the likely pressure from importing nations,” the bank said in a Jan. 31 report, adding that expectations remained “evenly balanced” between an accelerated response and a status quo increase.