Oil prices rebounded on Wednesday (Oct 30), rising more than 2 per cent after data showed US crude and gasoline inventories fell unexpectedly last week and on reports that the Opec+ may delay a planned oil output increase.
After falling more than 6 per cent earlier in the week on the reduced risk of wider Middle East war, Brent crude futures settled up US$1.43 or 2 per cent at US$72.55 a barrel. US West Texas Intermediate crude rose US$1.40 or 2.1 per cent to US$68.61.
US petrol stockpiles fell unexpectedly last week to a two-year low on strengthened demand, the Energy Information Administration said, while crude inventories also posted a surprise drawdown as imports slipped.
US imports of crude oil from Saudi Arabia fell to their lowest point last week since January 2021, at just 13,000 barrels per day (bpd), down from 150,000 bpd the previous week. Crude imports from Canada, Iraq, Colombia, Brazil all slipped on the week, EIA said.
“The most supportive element was gasoline inventories drawing amid higher implied demand week on week,” Kpler analyst Matt Smith said, adding lower imports helped crude oil inventories eke out a minor draw.
Reuters reported Opec+, which groups the Organization of the Petroleum Exporting Countries and allies such as Russia, could delay a planned oil production increase in December by a month or more because of concern over soft oil demand and rising supply.
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“Opec+ has always advised that the unwinding of voluntary supply cuts would be subject to market conditions,” said Harry Tchilinguirian, head of research at Onyx Capital Group.
“That they may be reconsidering the timing of a return of their barrels is not surprising given the weak macroeconomic realities, particularly in China, which have led to downward revisions in global demand growth estimates.”
The group is scheduled to raise output by 180,000 bpd in December. Opec+ has cut output by 5.9 million bpd, equivalent to about 5.7 per cent of global oil demand.
A decision to postpone the increase could come as early as next week, two Opec+ sources told Reuters.
OPEC+ is scheduled to meet on Dec 1 to decide its next policy steps. REUTERS
