Oil steady as markets weigh higher US stockpiles, OPEC+ supply plans
2024.12.03 21:13
By Arathy Somasekhar
(Reuters) – Oil prices were little changed in early Asia trade on Wednesday as market participants weighed higher oil and fuel inventories as well as the likelihood of OPEC+ extending supply cuts.
futures fell 2 cents, or 0.03%, to $73.60 a barrel by 0145 GMT, while U.S. West Texas Intermediate crude futures eased 3 cents, or 0.04%, to $69.91.
On Tuesday, Brent posted its biggest gain in two weeks, rising 2.5%.
U.S. crude oil inventory rose 1.2 million barrels last week, market sources said, citing data from the American Petroleum Institute. [API/S]
Gasoline inventory also rose, by 4.6 million barrels, even though the week included Thanksgiving when demand typically rises as families travel by car for holiday get-togethers.
Official data on oil stocks from the U.S. Energy Information Administration is due on Wednesday at 10:30 a.m. ET (1530 GMT). Analysts polled by Reuters expect a 700,000 barrel decline in crude and a 639,000 barrel increase in gasoline.
Buoying prices, the Organization of the Petroleum Exporting Countries and allies will likely extend output cuts until the end of the first quarter next year when members meet on Thursday, industry sources told Reuters. OPEC+ has been looking to gradually phase out supply cuts through next year.
Investors also continued to monitor tension in the Middle East for its impact on the region’s oil-producing countries.
Israel said on Tuesday it would to return to war with Hezbollah if their truce collapses, in which event its attacks would go deeper into Lebanon and target the state itself. The comment followed the deadliest day since Israel and Hezbollah agreed a ceasefire last week.
In neighbouring Syria, rebels advancing against government forces pushed close on Tuesday to the major city of Hama, rebels and a war monitor said, after their surprise capture of Aleppo last week.
