Oil gains despite OPEC+ output decision

Oil trended higher on Friday, as the markets estimate that OPEC’s decision to increase production targets by slightly more than planned won’t much affect tight global supply, in addition to rising demand as China eases COVID restrictions.

OPEC and allies, known as OPEC+, yesterday agreed to raise output by 648,000 barrels per day (bpd) a month in July and August rather than 432,000 bpd as previously agreed.

Brent crude soared $1.76, or 1.5%, to trade at $119.37 a barrel by 1338 GMT.

U.S. West Texas Intermediate (WTI) crude surged $1.70, or 1.3%, to trade at $118.57.

U.S. crude was heading for a sixth weekly gain, while Brent is set for weekly loss.

On Thursday, a U.S. weekly inventory report issued by the EIA showed that crude stockpiles fell by a more-than-expected 5.1 million barrels.