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Oil Rates Advance in Anticipation of Key OPEC Meeting

Oil prices added more than 1 percent on Wednesday in run-up to OPEC group meeting, scheduled for this week and expected to continue production curbs to buoy crude market, whereas fresh data showed that U.S. inventories diminished last week.

oil prices buoyed by opec meetingPhoto: Pixabay

Brent international benchmark for crude futures with delivery in February gained 1.48 percent, to $61,73 per barrel, while U.S. light oil futures with delivery in January rose by 1.35 percent, to $56,86 per barrel at 9.52 GMT.

Oil rates got the support on the eve of the OPEC meeting, which will discuss the further extension of production cuts to support the market. Growth in prices is also facilitated by economic figures, which showed that U.S. oil inventories last week fell stronger than analytics awaited

OPEC is preparing to adopt a larger reduction in oil production at a meeting in Vienna this week, according to Iraq statement, the 2nd largest oil producer in the group.

Meantime, oil inventories in the U.S. have dropped for the last week more than it was expected, according to the American Petroleum Institute (API) data. Stocks declined by 3.7 million barrels, more than double the forecast of analysts expecting only a 1.7 million barrel lowering.