Oil rises as US stocks fall, but Opec+ policy concerns limit gains
Brent crude futures were up 65c at $83.68 a barrel in early trade, while US West Texas Intermediate crude futures rose 68c to $78.88 a barrel
30 November 2022 - 07:52
byLaila Kearney
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New York — Oil prices rose in early Asian trade on Wednesday as US crude inventories were seen falling, but concerns that Opec+ would leave output policy unchanged at its upcoming meeting limited gains.
Brent crude futures were up 65c, or 0.8%, at $83.68 a barrel by 1.32am GMT, while US West Texas Intermediate (WTI) crude futures rose 68c, or 0.9%, to $78.88 a barrel.
Helping to boost prices, US crude oil stocks were expected to have dropped by about 7.9-million barrels in the week ended November 25, according to market sources citing American Petroleum Institute (API) figures on Tuesday. Gasoline inventories rose by about 2.9-million barrels, while distillate stocks were seen rising about 4-million barrels, according to the sources, who spoke on condition of anonymity.
Official figures are due by the US Energy Information Administration (EIA) on Wednesday.
The market was also watching the upcoming meeting by the Organization of the Petroleum Exporting Countries and allies including Russia, known as Opec+.
Opec+ is likely to keep oil output policy unchanged at a meeting on Sunday, five Opec+ sources said, though two sources said an additional production cut was also likely to be considered to support prices.
The group meets as slowing economies and Chinese Covid-19 lockdowns hit oil demand, while a nearing EU ban on Russian crude imports and a G7 price cap on Russian crude raises questions about supply.
Meanwhile, the International Energy Agency (IEA) expects Russian crude production to be curtailed by some 2-million barrels of oil per day by the end of the first quarter next year, its chief, Fatih Birol, told Reuters.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Oil rises as US stocks fall, but Opec+ policy concerns limit gains
Brent crude futures were up 65c at $83.68 a barrel in early trade, while US West Texas Intermediate crude futures rose 68c to $78.88 a barrel
New York — Oil prices rose in early Asian trade on Wednesday as US crude inventories were seen falling, but concerns that Opec+ would leave output policy unchanged at its upcoming meeting limited gains.
Brent crude futures were up 65c, or 0.8%, at $83.68 a barrel by 1.32am GMT, while US West Texas Intermediate (WTI) crude futures rose 68c, or 0.9%, to $78.88 a barrel.
Helping to boost prices, US crude oil stocks were expected to have dropped by about 7.9-million barrels in the week ended November 25, according to market sources citing American Petroleum Institute (API) figures on Tuesday. Gasoline inventories rose by about 2.9-million barrels, while distillate stocks were seen rising about 4-million barrels, according to the sources, who spoke on condition of anonymity.
Official figures are due by the US Energy Information Administration (EIA) on Wednesday.
The market was also watching the upcoming meeting by the Organization of the Petroleum Exporting Countries and allies including Russia, known as Opec+.
Opec+ is likely to keep oil output policy unchanged at a meeting on Sunday, five Opec+ sources said, though two sources said an additional production cut was also likely to be considered to support prices.
The group meets as slowing economies and Chinese Covid-19 lockdowns hit oil demand, while a nearing EU ban on Russian crude imports and a G7 price cap on Russian crude raises questions about supply.
Meanwhile, the International Energy Agency (IEA) expects Russian crude production to be curtailed by some 2-million barrels of oil per day by the end of the first quarter next year, its chief, Fatih Birol, told Reuters.
Reuters
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