Crude Oil Prices Rise Amidst Potential OPEC+ Decision On Supply Cut

Crude oil prices gained further on Thursday in the backdrop of the OPEC+ meeting deliberating on supply cuts. The unexpected rise in crude oil inventories in the U.S. limited gains.

Reuters quoted two OPEC+ sources to report that the group of OPEC and allies have agreed to a preliminary oil cut deal of over 1 million barrels per day. According to the report, the sources also expect the cut to include Saudi Arabia extending the voluntary cut of 1 million barrels per day plus additional contributions from other members.

Meanwhile, official data for the week ended November 24 released by the U.S. Energy Information Administration on Wednesday showed an increase of 1.61 million barrels in crude oil inventories. Markets had expected a reduction of 0.93 million barrels, as compared with the addition of 8.7 million barrels in the previous week.

Data released by the American Petroleum Institute had on Tuesday shown a decline of 0.8 million barrels in crude oil inventories during the week ended November 24, versus an addition of more than 9 million barrels in the previous week. Markets had expected inventories to decline by close to 2 million barrels.

Brent Oil Futures for February settlement is currently trading at $83.65, having gained 0.93 percent from the previous close of $82.88. The day’s trading ranged between $84.59 and $80.72, versus the 52-week trading that ranged between $70.06 and $97.69.

West Texas Intermediate Crude Oil Futures for January settlement also added 0.95 percent from the previous close of $77.86 to trade at $78.60. Prices ranged between a high of $79.59 and a low of $77.46. The 52-week trading range was between $63.64 and $95.03.

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