TOKYO- Oil prices rose on Thursday ahead of an OPEC+ meeting later in the day, with investors waiting to see what the producer group would do next on supply cuts while also monitoring tension in the Middle East.
Brent crude futures climbed 12 cents, or 0.2 percent, to $72.43 a barrel while US crude futures were at $68.70 a barrel, up 16 cents, or 0.2 percent.
Both benchmarks fell nearly 2 percent 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+ has been looking to phase out supply cuts through next year.
“Market participants are closely watching to see if OPEC+ will focus on bolstering prices by extending production cuts, or opt to defend its share of the global crude oil market by easing those cuts,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.
“The OPEC+ decision may prompt a short-term reaction, but the oil market is likely to rise by year-end on expectations of a US economic recovery under the Trump administration and ongoing Middle East tensions,” he said.
A larger-than-expected draw in US crude stockpiles 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 by more than expected during the week.
