Oil was up Wednesday morning in Asia as a strong economic rebound of key consumers boosted fuel demand and drained bloated inventories. Investors now await a Organization of the Petroleum Exporting Countries and allies (OPEC+) meeting for clues on production policy.
Brent oil futures rose 0.59% to $75.25 by 12:40 AM ET (4:40 AM GMT) and WTI futures jumped 0.47% to $73.19.
U.S. crude oil supply data from the American Petroleum Institute showed a draw of 7.199 million barrels for the week ending Jun. 18. Forecasts prepared by Investing.com predicted a 3.625 million-barrel draw, while an 8.537 million-barrel draw was recorded during the previous week.
Investors now await crude oil supply from the U.S Energy Information Administration, due later in the day.
Fuel demand has also been boosted by key markets including the U.S. and China which continue their economic recovery from COVID-19.
On the supply side, OPEC+ is due to meet in the following week to discuss its output policy. Russia is considering a potential supply increase, Russian officials told Bloomberg, while some OPEC+ nations are also discussing a potential supply hike in August, a delegate told Bloomberg.
Meanwhile, Iran indicated that nuclear talks with world powers could beextended beyond August 2021 and the possible gain in fuel supply is set to be delayed.
“Prices are comfortably placed where they’re now with the supply tightness and healthy demand recovery, joined by a delayed Iranian nuke deal…all eyes are now on the OPEC+ meeting next week.” Will Sungchil Yun, senior commodities analyst at VI Investment Corp, told Bloomberg.