By Nicole Jao
NEW YORK (Reuters) -Oil prices recovered on Wednesday, rising more than 2% after data showed gasoline inventories fell unexpectedly last week and after reports that OPEC+ could delay a planned increase in oil production.
After falling more than 6% earlier this week on reduced risk of a broader war in the Middle East, futures closed down $1.43, or 2.01%, at $72.55 a barrel. U.S. West Texas Intermediate crude rose $1.4, or 2.08%, to $68.61.
U.S. gasoline inventories unexpectedly fell to the lowest level in two years last week on stronger demand, the Energy Information Administration said, while crude inventories also suffered a surprise decline as imports fell.
U.S. crude oil imports from Saudi Arabia fell to their lowest since January 2021 last week, at just 13,000 barrels per day, down from 150,000 barrels per day the week before. Crude oil imports from Canada, Iraq, Colombia and Brazil all fell this week, the EIA said.
“The most supportive element was that gasoline inventories fell while implied demand rose week on week,” said Kpler analyst Matt Smith. Adding lower imports helped crude inventories post a small decline.
Reuters reported that OPEC+, which brings together 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 due to concerns about weak oil demand and rising supply.
“OPEC+ has always advised that the phasing out of voluntary supply cuts would depend on 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 reality, especially in China, which has led to downward revisions to global demand growth estimates.”
The group will increase production by 180,000 barrels per day (bpd) in December. OPEC+ has cut production by 5.86 million barrels per day, equivalent to about 5.7% of global oil demand.
A decision to delay the increase could come as soon as next week, two OPEC+ sources told Reuters.
OPEC+ will meet on December 1 to decide next policy steps.
