By Yuka Obayashi
TOKYO (Reuters) – Oil prices rose on Thursday ahead of the day’s OPEC+ meeting, with investors waiting to see what the producer group will do next on supply cuts and also monitoring tensions in the Middle East.
Futures climbed 12 cents, or 0.2%, to $72.43 a barrel by 0103 GMT, while futures were up 16 cents, or 0.2%, at $68.70 a barrel.
Both benchmarks fell about 2% on Wednesday.
The Organization of the Petroleum Exporting Countries and its allies in OPEC+ are likely to extend their latest round of oil production cuts by at least three months from January when it meets online at 1100 GMT on Thursday. OPEC + sources told Reuters, to provide additional support for the oil market.
OPEC+ is looking to phase out supply cuts by next year.
“Market participants are watching closely to see whether OPEC+ will focus on boosting prices by increasing production cuts, or choose to defend their share of the global crude oil market by reducing those cuts. ,” said Satoru Yoshida, a commodities analyst at Rakuten Securities.
“The OPEC+ decision may cause a short-term reaction, but oil markets are likely to rally through the end of the year on hopes of a US economic recovery under the Trump administration and ongoing Middle East tensions,” he said.
A bigger-than-expected draw in US crude inventories last week also provided some support to prices.
US crude stocks fell more than expected last week as refiners ramped up operations, the Energy Information Administration (EIA) said. Gasoline and distillate stockpiles rose more than expected during the week.
In the Middle East, Lebanon’s Hezbollah has been significantly degraded militarily by Israel, but the Iran-backed group will likely seek to rebuild its reserves and forces and the U.S. and its regional allies. will pose a long-term threat to, four sources have updated. US intelligence told Reuters.
Israel said on Tuesday it would return to war with Hezbollah if its cease-fire breaks down and that its attacks would go deeper into Lebanon and target the kingdom itself.
Meanwhile, Donald Trump’s Middle East envoy has traveled to Qatar and Israel to launch diplomatic pressure on the US president to help reach a Gaza ceasefire and hostage release deal before he takes office on January 20, a source said. told Reuters about the talks.
