Futures Movers: Brent oil back above $90 a barrel, with OPEC+ seen sticking to 400,000 barrel-a-day production rise

Reuters, citing two sources, said OPEC+ members had agreed to deliver the 400,000 barrel a day rise. OPEC+ has been raising output in 400,000 barrel-a-day increments since summer, but has failed to meet those raised production targets.

“Failure by OPEC+ to deliver on the monthly 400,000 production increase has actually become a bullish factor in the recent rally,” said Robert Yawger, executive director of energy futures at Mizuho Securities.

In One Chart: Why OPEC+ can’t hit its oil production targets — and what it could do about it

The group, meanwhile, has resisted pressure from the U.S. and major oil-consuming countries to more aggressively raise output, though some analysts have argued that a rise in crude prices to seven-year highs could prompt fears of demand destruction, warranting a more aggressive output boost.

U.S. inventory data will also be in focus. The American Petroleum Institute reported late Tuesday that U.S. crude supplies fell by 1.6 million barrels for the week ended Jan. 28, according to sources. The API, however, also reportedly showed a weekly inventory climb of 5.8 million barrels for gasoline, while distillate supplies decline by 2.5 million barrels.

Crude stocks at the Cushing, Okla., delivery hub edged down by 1 million barrels last week, sources said. Inventory data from the Energy Information Administration will be released Wednesday.

On average, the EIA is expected to show crude inventories rose by 1.1 million barrels, according to a survey of analysts conducted by S&P Global Platts. The survey also calls for a weekly supply rise of 1.7 million barrels for gasoline and an inventory decrease of 1 million barrels for distillates.