Oil rises on tighter OPEC supply, US jobs data
Shafaq News/ Oil prices rose on Wednesday as supplies from Russia andOPEC members tightened while data showing an unexpected increase in U.S. jobsopenings pointed to expanding economic activity and consequent growth in oildemand.
Brent crude was up 28 cents, or 0.36%, to $77.33 a barrel at 0415 GMT.U.S. West Texas Intermediate crude climbed 40 cents, or 0.54%, to $74.65.
Oil output from the Organization of the Petroleum Exporting Countriesfell in December after two months of increase, a Reuters survey showed. Fieldmaintenance in the United Arab Emirates offset a Nigerian output hike and gainselsewhere in the group.
In Russia, oil output averaged 8.971 million barrels a day in December,below the country's target, Bloomberg reported citing the energy ministry.
On the economic front, job openings rose in the United States inNovember and the number of layoffs was low, while workers were reluctant toquit, the Job Openings and Labor Turnover Survey showed.
"Robust U.S. economic data continues to bolster the outlook for theU.S. economy and oil demand, further supported by a larger-than-anticipateddrawdown in crude inventories," said IG market strategist Yeap Jun Rong.
"After trading within a prolonged tight range since October lastyear, selling pressures may have been exhausted for now, paving the way for a modestrecovery," Yeap said.
U.S. crude oil stocks fell last week while fuel inventories rose, marketsources said, citing American Petroleum Institute figures on Tuesday.
Going forward, analysts expect oil prices to be on average down thisyear from 2024 due in part to production increases from non-OPEC countries.
"We are holding to our forecast for Brent crude to average $76/bblin 2025, down from an average of $80/bbl in 2024," BMI, a division ofFitch Group, said in a client note.
"The bearish view is being led by our fundamental data forecast,which points to an oversupply this year, with supply growth outstripping demandgrowth by 485,000 barrels per day."
(Reuters)
