Oil prices rose in early Asian trade on Wednesday (Nov 30) as US crude inventories were seen falling, but concerns that OPEC+ would leave output policy unchanged in its upcoming meeting limited gains.
Brent crude futures were up 65 cents or 0.8% at US$83.68 (RM375.51) per barrel by 0132 GMT, while US West Texas Intermediate crude futures rose 68 cents or 0.9% to US$78.88 per barrel, according to Reuters.
Helping to boost prices, US crude oil stocks were expected to have dropped by about 7.9 million barrels in the week ended Nov 25, according to market sources citing American Petroleum Institute figures on Tuesday. Gasoline inventories rose by about 2.9 million barrels, while distillate stocks were seen rising about four million barrels, according to the sources, who spoke on condition of anonymity.
Official figures are due by the US Energy Information Administration on Wednesday.
The market was also watching the upcoming meeting by the Organization of the Petroleum Exporting Countries and allies including Russia, collectively known as OPEC+.
OPEC+ is likely to keep oil output policy unchanged in a meeting on Sunday, five OPEC+ sources said, although two sources said an additional production cut is 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 European Union ban on Russian crude imports and a Group of Seven (G7) price cap on Russian crude raises questions about supply.
Meanwhile, the International Energy Agency expects Russian crude production to be curtailed by some two million barrels of oil per day by the end of the first quarter next year, its chief Fatih Birol told Reuters.
