Brent crude futures added 33 cents, or 0.4 per cent, at $82.01 a barrel and U.S. WTI crude futures jumped 45 cents, or 0.6 per cent, to $76.86 a barrel
Oil prices rose on Wednesday as a storm in the Black Sea region disrupted oil exports from Kazakhstan and Russia, raising concerns of supply tightness, while investors awaited a vital decision by OPEC+, which may deepen or extend output cuts.
Brent crude futures added 33 cents, or 0.4 per cent, at $82.01 a barrel at 0127 GMT. U.S. West Texas Intermediate (WTI) crude futures jumped 45 cents, or 0.6 per cent, to $76.86 a barrel.
Both benchmarks advanced nearly 2 per cent on Tuesday on the probability the Organization of the Petroleum Exporting Countries and allies like Russia, or OPEC+, will extend or deepen supply cuts, as well as concerns over Kazakh oil output and a weaker U.S. dollar.
A severe storm in the Black Sea region has disrupted up to 2 million bpd per day of oil exports from Kazakhstan and Russia, according to state’s officials and port agent data.
Kazakhstan’s biggest oilfields are cutting combined daily oil output by 56 per cent from November 27, the Kazakh energy ministry said.
Investors covered short positions ahead of OPEC+ meeting amid concerns over supply disruption from Kazakhstan, said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
All eyes are on OPEC+ policy and demand outlook toward the end of this year, but WTI is expected to stay near $76, with a range of $5 each above and below, for a while unless OPEC+ considerably expands production cuts, Kikukawa added.
OPEC+ is scheduled to hold an online ministerial meeting on Thursday to discuss 2024 production targets, after postponing the meeting from November 26.
The talks will be difficult and a rollover of the previous agreement is possible instead of deeper production cuts, OPEC+ sources said.
Oil also found support from the dollar’s weakness and a decline in U.S. crude inventories.
The dollar was near a three-month low against its major rivals on Wednesday as expectations mount the Federal Reserve could begin lowering rates by early next year.
A weaker dollar typically supports oil prices as it makes oil cheaper for those holding other currencies.
