2023-11-29T04:21:15+00:00
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/ Oil prices rose in early Asian trading, on wednesday, after a storm in the Black Sea region disrupted Kazakhstan and Russia’s crude exports, raising fears of supply shortages while investors awaited a decisive decision from the OPEC+ alliance that may increase or extend production cuts.
By 0127 GMT, Brent crude futures rose 33 cents, or 0.4 percent, to $82.01 per barrel. US west Texas Intermediate crude futures rose 45 cents,or 0.6 percent, to $76.86 per barrel.
The two benchmarks rose about two percent yesterday, Tuesday, thanks to the possibility of the OPEC+ alliance, which consists of the Association of the Petroleum Exporting Countries (OPEC) and allies such as Russia, extending or increasing supply cuts, as well as concerns about oil production in Kazakhstan and the weakness of the dollar.
A severe storm in the Black Sea region disrupted up to two million barrels per day of oil exports from Kazakhstan and Russia,according to government officials and shipping data.
OPEC+ is scheduled to hold an online ministerial meeting tomorrow, Thursday, to discuss production targets for 2024, after it was postponed from November 26.
four OPEC+ sources said that the talks will be difficult and it is indeed possible to extend the previous agreement rather of deeper cuts in production.
Oil also received support from the weakness of the dollar and the decline in US crude inventories.
The dollar fell near its lowest levels in three months against other major currencies on Wednesday, with growing expectations that the Federal Reserve (the US central bank) may begin cutting interest rates early next year.