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OPEC+ seen sticking with oil output policy at Feb. 1 meeting
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Russian oil supply appears to remain strong
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Investors watch for central bank rate hikes
By Laila Kearney Jan 31 (Reuters) - Oil prices steadied in early Asian trade on Tuesday after falling by more than 2% in the previous session on the threat of further interest rate hikes and continued Russian crude flows.
Brent crude futures gained 28 cents to $85.18 per
barrel by 0155 GMT, while U.S. West Texas Intermediate (WTI)
crude futures were up 9 cents to $77.99.
Investors expect the U.S. Federal Reserve will hike interest
rates by 25 basis points on Wednesday, with a half-point
increase by the Bank of England and European Central Bank the
following day. Higher rates could slow the global economy and
weaken oil demand.
The market also turned its attention to a planned virtual
meeting on Feb. 1 at 1100 GMT of the ministers of the
Organization of the Petroleum Exporting Countries (OPEC) and
others including Russia, a group known as OPEC+.
The panel is expected to recommend keeping the oil producer
group's current output policy unchanged when it meets this week,
five OPEC+ delegates told Reuters on Monday.
OPEC+ agreed in October to cut its production target by 2 million barrels per day (bpd), about 2% of world demand, from November until the end of 2023. Russia continues to supply the global market with its oil despite a European Union ban and G7 price cap imposed over its invasion of Ukraine, which pressured prices. Lending some support to oil prices, the U.S. dollar index has fallen by 1.3% in January so far. A weaker dollar makes crude less expensive for non-U.S. buyers. (Reporting by Laila Kearney in New York; Editing by Jamie Freed)
