Oil steadies near $60 with OPEC+ poised to relax supply curbs
Oil steadied near $60 a barrel after a three-day fall with the OPEC+ alliance said to be poised to agree an output increase at its meeting this week, a sign of the market’s resilience as the impact of the pandemic ebbs.
West Texas Intermediate was just 0.3% lower, while Brent was steady. The widespread view among the producer group is that the market can absorb additional barrels, according to people familiar with the matter.
Oil has staged a powerful rally this year following significant OPEC+ supply curbs, including unilateral reductions by Saudi Arabia, and the vaccine-aided rebound in activity. That strengh has paved the way for the alliance to return some barrels, with OPEC Secretary-General Mohammad Barkindo saying on Tuesday that both the global economic outlook and oil market continue to show signs of improvement. The producer grouping could return the bulk of the 1.5 million barrel-a-day output hike that’s up for debate this week.
