Oil Prices Rise Amid OPEC+ Meeting Expectations
Oil prices edged higher in Asian trade on Thursday, buoyed by a larger-than-expected decline in US inventories and escalating geopolitical tensions in the Middle East. Despite limited gains, traders are eagerly awaiting an OPEC+ meeting later in the day to provide further clues on supply.
Brent crude futures rose 0.1% to $72.37 a barrel, while West Texas Intermediate crude futures climbed 0.2% to $68.32 a barrel.
The OPEC+ cartel is set to meet and is expected to delay plans to increase production. Recent reports suggest that the group will maintain its production cuts until at least the second quarter of 2025. This decision comes as OPEC+ remains cautious over slowing oil demand, particularly in top importer China.
US oil inventories shrank by a bigger-than-expected 5.07 million barrels in the final week of November, according to government data released on Wednesday. However, product inventories, including gasoline and distillates, rose, indicating that overall fuel demand remains cooling in the world’s largest fuel consumer.
Demand for heating fuels is expected to increase during the winter season, but a decline in travel activity is likely to offset this trend. Meanwhile, sentiment towards demand has improved in recent weeks, amid signs of economic resilience in the US, and expansionary policies under President-elect Donald Trump are expected to boost fuel demand.