Oil climbed in early Asian trade on Wednesday, boosted by tightening global oil supplies ahead of an OPEC+ ministerial meeting.
Brent crude oil futures were up 6 cents to $90.98 per barrel at 0004 GMT, while WTI crude in the United States was up 11 cents to $89.34 per barrel.
When the Organization of the Petroleum Exporting Countries and Allies, or OPEC+, meets on Wednesday, it is anticipated to maintain its current output strategy after members Saudi Arabia and Russia extended output curbs through the end of the year.
According to Reuters, Saudi Arabia is poised to hike its November official selling price of Arab Light oil to Asia for the fifth consecutive month.
According to Interfax, Russia’s Deputy Prime Minister Alexander Novak, the country’s gasoline export embargo, which was implemented last month, would remain in force for as long as required to stabilize prices and handle internal market shortages.
According to market sources quoting American Petroleum Institute numbers on Tuesday, oil stockpiles in the United States decreased by roughly 4.2 million barrels in the week ending September 29. [API/S]
The US government’s stockpile data is coming on Wednesday. Reuters surveyed eight analysts, who anticipated that oil inventories declined by approximately 500,000 barrels in the week ending September 29. [EIA/S]
Prices have been weighed down in recent days by the strength of the U.S. dollar, which soared to a 10-month high versus a basket of global rivals on Tuesday after data on job vacancies in the United States indicated a still-tight labor market, which might drive the Federal Reserve to boost interest rates next month.
Higher interest rates and a higher dollar raise the cost of oil for holders of foreign currencies, thereby dampening demand.
Investors are especially concerned about the political upheaval in Washington. Republicans in the United States House of Representatives dismissed its leader for the first time in history on Tuesday, throwing Congress into more disarray only days after narrowly avoiding a government shutdown.
