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Oil Rises Slowly Due to Expectations of U.S. Stocks Decline

Oil is rising moderately on Tuesday after Russian Energy Minister Alexander Novak statements to continue working with OPEC to support the market anticipating U.S. inventories data.

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International benchmark Brent gained 0.30 percent, to reach $66,59 per barrel at 9.18 GMT, while U.S. WTI light crude futures with delivery in February advanced 0.20 percent, to $60.64 per barrel on Tuesday.  

OPEC’s members and its allies will discuss in March further moves under the restrictive pact, including reducing quotas for oil production, Alexander Novak said in an interview on Monday.

According to the head of the oil market research department in Rystad Energy,Bjørnar Tonhaugens, the earlier agreement of the OPEC countries to extend and strengthen production cuts in the first quarter of 2020 is only a temporary solution.

Market participants are also waiting for data on oil reserves in the United States. The American Petroleum Institute (API) will release its report in the day later, while the Energy Information Administration (EIA) report will be published only on Friday in connection with the Christmas holidays.

Analysts polled by Reuters predict that U.S. oil inventories dropped by about 1.8 million barrels last week, gasoline inventories grew for the 7th consecutive week and distillates for the 5th week in a row.