Oil Rises Before OPEC Meeting

Oil gained on Wednesday ahead of meetings this week where OPEC and its allies are expected to extend production curbs to support the market, while industry data showing that US crude stockpiles fell more than expected helped to lift prices, Reuters reported.

Brent crude futures were up 75 cents, or 1.23%, at $61.57 a barrel. US West Texas Intermediate crude futures were up by 65 cents, or 1.16%, at $56.75.

The Organization of the Petroleum Exporting Countries and allies that include Russia - a group known as OPEC+ - may be preparing to approve deeper crude output cuts this week, when they meet in Vienna, according to Iraq, the group’s second-biggest producer.

Iraqi Oil Minister Thamer Ghadhban told reporters in Vienna that “a deeper cut is being preferred by a number of key members”.

Oman’s Oil Minister Mohammed al-Rumhi said on Wednesday that his country’s delegation would recommend an extension of output cuts until the end of 2020.

There is still some skepticism in the market over whether OPEC will cut output further, although it is accepted that the group is keen to support prices, with many analysts expecting an extension of existing cuts.

OPEC members meet on Thursday and on Friday the OPEC+ group meets. OPEC+ has been curbing supply since 2017 and is expected to keep the cuts in place to balance out booming output in the United States, which has become the world’s biggest producer and is not taking part in the cuts.

Crude oil inventories in the US fell by more than expected last week. Stockpiles of crude oil fell by 3.7 million barrels, more than double expectations of a decline of 1.7 million barrels.