OPEC+'s maintenance of the February production increase brought optimism to the market, and Brent crude rose more than 1% to the 80 mark

On Tuesday (January 4), U.
S.
oil rose 1.
49% to close at $77.
21 / barrel
.
Oil prices moved higher
as OPEC+ agreed to stick to its February production increase plan based on signs that the omicron variant would only have a modest impact on demand.
Earlier data released by the American Petroleum Institute (API) showed that U.
S.
crude oil inventories plunged by 6.
433 million barrels as of December 31, 2021, the largest decline since July 2021, gasoline inventories soared by 7.
061 million barrels, and refined oil inventories increased by 4.
38 million barrels
.
After the data was released, the two major crude oil contracts did not fluctuate much
.

OPEC+ on Tuesday approved a 400,000 barrel-per-day
increase in production in February, given that oil demand largely withstood the onslaught of the omicron pandemic.
Russian Deputy Prime Minister Alexander Novak said in an interview that the proliferation of omicron has not weakened oil demand
given the low hospitalization rate.
All OPEC+ members support an increase in production, and it is necessary to continue to fulfill OPEC+'s obligation
to increase production.

The OPEC+ Joint Technical Committee said on Monday that the global crude surplus in the first three months of this year will be 1.
4 million b/d, down from the previous estimate of 1.
9 million bpd
.
While OPEC+ still expects a glut of oil this month, it appears to be less
severe than previously expected.
The rising premium of Brent crude front-month contracts over far-month contracts indicates that the market remains tightly supplied
.

Ed Moya, senior market analyst for the Americas at Oanda, said: "Oil prices have started to rise
as OPEC+ shows confidence that the outlook for global crude oil demand will be dealt only a limited blow.
In addition, geopolitical risks such as Russia-Ukraine tensions and the lengthy Iran nuclear deal negotiations also supported higher oil prices
.
Unless risk appetite worsens or stocks fall, Brent should stay in the $80 per barrel range for a while, and WTI may consolidate around $77.
"

Bjornar Tonhaugen, head of oil markets at Rystad Energy, said: "The oil market is positive today due to the optimism generated by the OPEC+ monthly meeting, which has helped push oil prices
higher.
" A spokesman said Tuesday that the White House welcomed OPEC+'s decision to continue increasing production, which would help boost the recovery
.

Given the recent difficulties faced by some members such as Angola and Nigeria, it is still questionable
whether OPEC+ can actually complete the monthly production increase.
Amrita Sen, chief oil analyst and co-founder of Energy Aspects Ltd.
, said OPEC+ crude could be added by only 130,000 barrels per day in January and 250,000 barrels in February
.
Even if the planned increase in production is 400,000 barrels, the actual expectation of flowing to the market is only half of that figure, or even lower
.