On Wednesday, oil prices were up, raised by the plummet recorded in last week’s US crude inventories.
As of 00.49 GMT, Brent crude oil futures rose by 0.2% or 10 cents to USD43/barrel, and US WTI crude futures climbed by 0.4% or 14 cents to USD40.43/barrel.
Data from the American Petroleum Industry (API) showed that in the week ended July 10, US crude oil stockpiles nosedived by 8.3 million barrels, when analysts only estimated a 2.1 million barrels fall.
Official data from the U.S. Department of Energy’s Energy Information Administration (EIA) is scheduled for Wednesday.
Looking ahead, the market is now focusing on the Wednesday meeting of the Joint Ministerial Monitoring Committee (JMMC) of the Organization of the Petroleum Exporting Countries (OPEC). The meeting will assess the policy on the group’s oil output cut, whether OPEC and its non-member allies (OPEC+) would extend the cut of 9.7 million bpd set to end in July or to ease the cut to 7.7 million bpd.
ANZ Research noted that OPEC+’s decision on the matter would set the tone for the global oil market.
Regarding the current output cut, an OPEC+ source informed that the group delivered compliance to the pact by 107%.
Separately, in its monthly report, OPEC estimated the global oil demand to jump by a record 7 million bpd in 2021. It argued that next year, the recovery of the global economy after the coronavirus pandemic would provide support for demand, even when it would be lower than the level reached in 2019.
