Petroleum prices on Wednesday ahead of an expected extension to production curbs by the Organization of the Petroleum Exporting Countries and its allies, with further support from industry data showing a larger than forecast drop in U.S. crude stockpiles.
Brent crude futures were up $2.13, or 3.5%, at $62.95 U.S. a barrel. U.S. West Texas Intermediate (WTI) crude futures were up $2.16, or 3.9%, to $58.27 U.S. a barrel.
Data provided by the U.S. Energy Information showed that U.S. inventories decreased by 4.9 million barrels for the week ending Nov. 29. Analysts had been expecting a decrease of 1.5 million barrels.
OPEC and allies that include Russia – a group known as OPEC+ – could approve deeper crude output cuts when they meet in Vienna this week.
There is still some market skepticism over a deepening of cuts, though it is accepted that the producer group is keen to support prices, with many analysts expecting an extension of the existing supply pact.
OPEC members meet on Thursday, with the OPEC+ group meeting the following day. OPEC+ has been curbing supply since 2017 and is expected to keep the cuts in place to balance out record production in the United States.
U.S. crude oil inventories fell more than expected last week, according to the American Petroleum Institute. The API said crude stocks dropped by 3.7 million barrels, more than double the expected 1.7 million barrels.