Oil retreated as traders wait to see whether OPEC+ can deliver on its latest promised increase in supply, while stock markets fell.
West Texas Intermediate slid 1% after nearing $90 Wednesday, dragged down in part by softer risk sentiment in equities. While the Organization of Petroleum Exporting Countries and its allies agreed midweek to a further lift in output, traders are doubtful that all members will be able to meet their quotas in full.
Crude is still heading for a seventh weekly gain, with banks including Goldman Sachs Group Inc. seeing oil moving toward $100 a barrel. The rally has been underpinned by rising demand, low stockpiles and interruptions to supply. High levels of backwardation in the futures curve continue to signal a tight market.
With oil and gas prices near multiyear highs, supermajor Shell Plc unveiled a bumper set of fourth-quarter earnings on Thursday that comfortably exceeded analysts’ estimates. At the same time, it kept a tight lid on capital spending.
“It may be a bit toppish at the moment,” said Hans van Cleef, senior energy economist at ABN Amro NV. “I cannot see many drivers which would justify a move higher from here.”
