Oil prices rose on Wednesday, supported by a forecast for on global economic recovery and by oil output curbs by the Organization of the Petroleum Exporting Countries (OPEC) and their allies, though gains were capped by rising U.S. inventories.
Brent crude rose 66 cents, or 1%, to $68.18 per barrel and U.S. West Texas Intermediate crude rose 68 cents, or 1.06%, to $64.70 per barrel.
The pandemic-hit global economy is set to rebound with 5.6% growth this year and expand 4% next year, the Organization for Economic Cooperation and Development (OECD) said in its interim economic outlook. Its previous forecast had been for growth of 4.2% this year.
Prices also gained support from the decision by the OPEC+ producer group to largely maintain production cuts in April.
Saudi Foreign Minister Prince Faisal bin Farhan Al Saud on Wednesday that his country and Russia were keen for fair oil prices and will continue their cooperation in the framework of the OPEC+ group.
As part of a deal by OPEC+, Saudi Arabia has pledged to cut production voluntarily by one million barrels per day (bpd) in February and March, but oil exports from the kingdom – as monitored by two companies – suggest a smaller decline in February.
Oil prices remained under pressure from a combination of factors including top importers China and India drawing crude from storage at current high prices and expectations of a return of Iranian supplies, analysts said.
U.S. crude inventories rose by 12.8 million barrels in the week to March 5, trading sources said, citing data from industry group the American Petroleum Institute. Analysts polled by Reuters had expected a build of about 800,000 barrels.
Official figures from the Energy Information Administration are due later on Wednesday.