London, Wednesday, 5 October 2022
Due to rising supply-side worries sparked by projected supply curbs by OPEC+ countries, oil prices rose on Wednesday.
At 09.56 a.m. local time (06.56 GMT), the price of international benchmark Brent crude was $91.98 per barrel, up 0.20% from the previous trading session's closing price of $91.80 per barrel.
American benchmark West Texas Intermediate (WTI), which is currently trading at $86.59 a barrel, rose 0.08% from the previous session's closing price of $86.52 per barrel.
The conclusion of the OPEC+ meeting on Wednesday, where the group is anticipated to reduce output in November in accordance with its demand prediction, is now being anticipated by investors.
International media reports that the group is discussing a cut that could be significantly bigger than initially anticipated—up to 2 million barrels per day (bpd).
According to experts, a decrease in output of this magnitude would compress the market, and a rise in Chinese demand might make the market much tighter.
In October, the member nations decided to reduce production by 100,000 bpd.
Late on Tuesday, the American Petroleum Institute (API) also reported that it expected US crude oil stocks to decline by approximately 1.77 million barrels compared to the market's anticipation of a 1.96 million-barrel increase.
Inventory reductions signal a rise in US demand for crude.
The US Energy Information Administration will release the official oil stock statistics on Wednesday
(Report by: The Decision Maker – Finance editors)
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