Oil rises 1.5% as OPEC+ considers delaying output increase

Oil prices rose 1.5% in European trade on Wednesday, heading for the second gain in 3 days after taking a pause yesterday, on strong odds for OPEC-Plus delaying the output increase scheduled early next year, which offset a sudden build in the US crude inventories according to preliminary data.

US crude rose 1.5% to $41.93, after opening at $41.32, and hit a session low of $41.10, and Brent crude rose 1.3% to $44.34 a barrel,  after opening at $43.79, with a low of $43.50.

US crude lost 0.25% yesterday, and Brent crude futures fell about 0.3%, after gaining over more than 3% on Monday. 

The Joint Ministerial Committee of OPEC-Plus met on Tuesday to review the global supply cut agreement, and pledged to show flexibility in responding to the market needs next year.

According to news agencies, the follow-up did not result in any official recommendations to the official meeting at the level of all ministers on November 30 and December 1.

Reuters reported on Monday that the collation is prone to delaying the planned increase in output that is scheduled for next January by 2 million barrels per day, or 2% of the global supply.

A confidential document seen by Reuters showed that OPEC and its allies supporting the case for a tighter policy on output next year, while demand weakening than previously expected after reviewing oil demand outlook in 2021.

The American Petroleum Institute (API) revealed yesterday in preliminary data that the US crude inventories rose by about 4.2 million barrels during the week ending November 13, missing forecasts of 1.2 million barrels.

While the US Energy Information Administration's official data will be released later today, amid forecasts for inventories to rise by 1.7 million barrels.