Oil advances after OPEC + and before US stocks

Brent was up 1.10% from Tuesday’s close at $ 44.23. In New York, the WTI appreciated 0.94% to 41.82 dollars.

Oil prices were on the rise on Wednesday, the day after a meeting of the alliance of producing countries paving the way for an extension of the current supply limitation, and before the EIA’s publication of the state of stocks in the United States.

At around 10:40 a.m. GMT (11:40 a.m. CET), a barrel of North Sea Brent for January delivery was up 1.10% from Tuesday’s close at $ 44.23.

In New York, WTI’s US barrel for December appreciated 0.94% to $ 41.82.

“Oil prices are rising modestly with the hope that OPEC + decides to postpone the increase in its production scheduled for January,” said Bjornar Tonhaugen, analyst at Rystad.

The Organization of the Petroleum Exporting Countries (OPEC) and their allies via the OPEC + agreement said they were “ready to act” on Tuesday to maintain a balance between supply and demand for black gold, at the end of their monthly meeting.

“All participating countries must be vigilant, proactive and ready to act, if necessary, according to market demands,” the alliance of producer countries said in a statement.

OPEC + is subject to major cuts in its crude production in an attempt to adapt it to a level of demand slashed by the Covid-19 pandemic, and to avoid a fall in prices comparable to that of the beginning of the year.

According to the current agreement, the current market withdrawal of 7.7 million barrels per day is to be reduced to 5.8 million from January 2021.

Several market observers are counting on a postponement of three to six months, which will probably be noted on the occasion of the next summit of the cartel and its partners on November 30 and December 1.

Investors are also awaiting weekly figures on US stocks released by the US Energy Information Agency (EIA) later today.

According to the median of analysts polled by the Bloomberg agency, US crude reserves for the week ended November 13 are expected to rise by 1.6 million barrels, in particular thanks to domestic production which should return to normal after the passage of successive hurricanes in early autumn.

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