Oil prices climb ahead of OPEC+ meeting, EIA data

Pump jack over an oil well along Interstate 25 near Dacono, Colo, December 22, 2018. (AP)

SULAIMANI (ESTA) — Oil prices recovered on Wednesday, after a U.S. industry report showed crude inventories fell more than expected last week.

Brent crude futures gained 39 cents to $72.02 a barrel at 0656 GMT, while U.S. West Texas Intermediate (WTI) crude futures was at $68.89 per barrel, up 39 cents.

Tuesday’s report from the American Petroleum Institute (API) that showed a bigger-than-expected drop in U.S. crude inventories was bullish and is supporting prices, Reuters cited Avtar Sandu, a senior commodities trader at Phillip Futures, as saying.

U.S. crude stocks fell by 4 million barrels for the week ended August 27, two market sources told Reuters, citing API figures.

Prices rose ahead of OPEC+ meeting at 1500 GMT where the Organization of the Petroleum Exporting Countries (OPEC), Russia and allies are expected to stick to a plan to add 400,000 barrels per day (bpd) each month through December.

OPEC+ expects the market to be in deficit at least until the end of 2021, Reuters reported, citing OPEC+ sources.

“This should provide comfort to the group that they can proceed with their planned monthly 400,000 bpd increase in production,” ANZ Research analysts said in a note.

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