Oil prices rose slightly on Wednesday, with traders expecting the Organization of the Petroleum Exporting Countries and its allies, a body known as OPEC+, to announce an extension to supply cuts this week while heightened geopolitical tensions continue to dominate market sentiment.
Brent crude futures rose 38 cents, or 0.5%, to $74.00 U.S. a barrel, while U.S. West Texas Intermediate crude futures were up 32 cents, also 0.5%, to $70.26. On Tuesday, Brent posted its biggest gain in two weeks, rising by 2.5%.
A shaky ceasefire between Israel and Hezbollah, South Korea’s curtailed declaration of martial law and a rebel offensive in Syria that threatens to draw in forces from several oil-producing countries all lent support to oil prices.
In the Middle East, Israel said on Tuesday it would return to war with Hezbollah if their truce collapses and that its attacks would go deeper into Lebanon and target the state itself.
In South Korea, meanwhile, lawmakers have submitted a bill to impeach President Yoon Suk Yeol after his declaration of martial law on Tuesday, which was reversed within hours, sparking a political crisis in Asia’s fourth-largest economy.
Industry sources were quoted as saying OPEC+ is likely extend output cuts until the end of the first quarter next year when members meet on Thursday.
U.S. crude oil inventories rose 1.2 million barrels last week, market sources said, citing data from the American Petroleum Institute.
Gasoline stocks also rose, by 4.6 million barrels, even though the week included Thanksgiving, when demand typically rises.