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Oil prices recovered from their losses yesterday, Wednesday, with US crude inventories rising more than expected and the Organization of the Petroleum Exporting Countries (OPEC) intending to maintain its cautious approach to increasing supplies to the market despite strong demand in various parts of the world.
US crude inventories increased by 4.6 million barrels last week, exceeding expectations, supported by a recovery in production after the resumption of work in offshore facilities that were closed due to two hurricanes in the US Gulf region.
By 14:51 GMT, Brent crude rose seven cents to $79.11 per barrel.
Crude oil fell nearly $2 yesterday, Tuesday, after touching its highest levels in nearly three years at $80.75 per barrel.
The price of US crude rose 23 cents, or 0.3 percent, to $75.52 per barrel.
Oil prices had begun to rise at a time when economies were recovering from pandemic closures and demand for fuel was rising, while some producing countries witnessed supply disruptions.
The US Department of Energy said that stocks of oil, gasoline and distillates in the United States rose last week.
US production increased to 11.1 million barrels per day, which is consistent with the production level before Hurricane Ida about a month ago.
Sources said that OPEC and its allies, the group known as OPEC+, will likely maintain an agreement to increase production by 400,000 barrels per day in November when they meet next week, despite consumer pressure for a greater increase in supplies.
OPEC said on Tuesday that demand for oil is expected to rise strongly in the next few years and indicated that the world must continue to invest in production to avoid a crisis even as it switches to less polluting fuels.
2023-12-17 17:27:51