Crude oil rose Wednesday, due to signs Opec+ producers will agree to continue to curb supplies when they meet in December, a weaker U.S. dollar and as traders covered short positions ahead of an industry report on U.S. crude inventories.
Brent crude rose 68 cents, or 1.16%, to settle at $59.42 a barrel. U.S. West Texas Intermediate crude gained 55 cents, or 1.04%, to settle at $53.36/Bbl, Kallanish Energy reports.
But oil prices lost gains in post-settlement trade after American Petroleum Institute data showed a larger-than-expected increase in U.S. oil stocks. Brent edged lower to $59.15/Bbl, and WTI to $53.07/Bbl.
U.S. crude inventories for the week ended Oct. 11, rose to 432.5 million barrels (Mmbbl), according to the American Petroleum Institute’s weekly report ahead of government inventory data due today.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.6 Mmbbl, API reported.
Opec+ members, which include most Opec members and 10 non-Opec producers led by Russia, meet Dec. 5-6 in Vienna to review output policy.
Market participants believe Opec+ could decide to extend production cuts. Opec secretary-general Mohammad Barkindo has said deeper output cuts are an option. On Tuesday, he said Opec would do what it could with allied producers to sustain oil market stability beyond 2020.
Opec+ members have agreed to cut oil output by 1.2 million barrels per day (Mmbpd) until March 2020.
In early trading, prices had slipped because of concerns about weaker demand for fuel due to slower economic growth and forecasts of a further rise in U.S. crude oil inventories.
The dollar weakened after U.S. retail sales data disappointed investors. Oil is traded in U.S. dollars, so oil typically rises when the dollar falls.
On Tuesday, the International Monetary Fund fed said the U.S.-China trade war would cut 2019 global growth to its slowest since the 2008-2009 financial crisis.
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