Oil prices rise as OPEC+ sticks to plan output increase

Oil prices rise as OPEC+ sticks to plan output increase

Oil prices rose slightly in early Asian trade on Friday as nations tried to address global crude oil and fuel supply tightness.

The price of crude futures rose 39 cents, or 0.4%, to $110.44 a barrel at 0012 GMT, while the U.S. West Texas Intermediate WTI crude futures rose 37 cents, or 0.4%, to $104.31 a barrel.

OPEC and allied producing countries, including Russia, will likely stick to a plan for accelerated output increases in August in hopes of easing crude prices and inflation, as U.S. President Joe Biden plans to visit Saudi Arabia, sources said.

The OPEC agreed at its last meeting on June 2 to boost output by 648,000 barrels a day in July, or 7% of global demand, compared to the initial plan to add 432,000 barrels per day a month over three months until September.

The group has struggled to meet the monthly increase targets due to underinvestment in oilfields by some OPEC members and recent losses in Russian output.

A source familiar with the discussions said that the two sides agreed to work together, despite the fact that major U.S. oil refiners and Energy Secretary Jennifer Granholm emerged from an emergency meeting over the issue with no concrete solutions to reduce prices.

Official weekly estimates for U.S. oil inventories were scheduled to be released on Thursday but technical problems will delay the figures until next week, the U.S. Energy Information AdministrationEnergy Information Administration said.