2023-11-29T19:28:16+00:00
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Oil prices rose, on Wednesday evening, during volatile trading as investors focused on the upcoming OPEC+ production policy meeting adn ignored the rise in stocks of crude oil, gasoline, and distillates in the United States.
By 16:32 GMT, brent crude futures rose 43 cents, equivalent to 0.5 percent,to $82.11 per barrel.
US West Texas Intermediate crude futures rose 49 cents, or 0.6 percent, to $76.90 per barrel.
The two benchmarks increased by more than a dollar earlier in the session and declined briefly before the release of the weekly US inventory report, then rose again.
“Prices will remain volatile until we get more clarity from OPEC,” said Matt Smith, an analyst at Kpler.
The two benchmarks rose about two percent yesterday, Tuesday, thanks to the possibility of the OPEC+ alliance, which consists of the Institution of the Petroleum Exporting Countries (OPEC) and allies such as Russia, extending or increasing supply cuts.
The OPEC+ alliance continued the talks on Wednesday, which sources described as difficult. Sources said that a meeting to decide production policies for next year is expected to be held tomorrow, Thursday, as planned.
The US Energy Facts Administration reported on Wednesday that there was a sudden increase in inventories of crude oil,gasoline and distillates in the United States last week,indicating weak demand. The data showed that gasoline stocks also rose more than expected.
However, the impact of these increases in inventory was offset by the huge withdrawal of other refined products, said Giovanni Staunovo, an analyst at UBS.
A severe storm in the Black Sea region has disrupted up to 2 million barrels per day of oil exports from Kazakhstan and Russia, according to government officials and shipping data, raising the possibility of tight supplies in the short term.
The Kazakh Ministry of Energy said that the country’s largest oil fields reduced daily oil production by 56 percent as of November 27.