Crude oil rises in early trade

5 Apr 2023 , 08:53 AM

Early on Wednesday in Asian trading, oil prices increased due to expected drops in U.S. crude inventories and the revised output reduction plans from OPEC+.

Brent crude futures increased 38 cents to $85.32 a barrel. US crude’s West Texas Intermediate gained 33 cents to $81.04 a barrel.

The American Petroleum Institute said on Tuesday that U.S. crude stocks decreased by around 4.3 million barrels in the week ending March 31, which helped to increase oil prices.

Asia’s service sector saw its greatest growth in Japan in more than nine years in March.

According to news reports, distillate stocks decreased by approximately 3.7 million barrels and petrol inventories decreased by approximately 4 million barrels.

On Wednesday at 14:30 GMT, the Energy Information Administration, the U.S. Department of Energy’s statistical division, is expected to release its official inventory report.

Oil prices were also aided by the most recent goals established by the Organization of Petroleum Exporting Countries (OPEC) and its partners, which includes Russia, together known as OPEC+. With the OPEC+ agreement, the group would have cut 3.66 million bpd in total, including 2 million barrels in October, or around 3.7% of global demand.

Concerns about demand were preventing oil prices from rising, as U.S. manufacturing activity slumped in March and job postings in the country fell to their lowest level in nearly two years in February. Concerns about the demand for crude oil were exacerbated last month by weak factory activity in China.

For feedback and suggestions, write to us at [e-mail]