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Oil prices edge up as OPEC+ output cuts, U.S. inventories brighten outlook

05 April 2023 09:23 (UTC +04:00)

Oil prices rose on Wednesday, boosted by expectations of U.S. crude inventory declines as well as the latest output cut targets set by the OPEC+ producer alliance, APA-Economics reports citing Investing.

Brent crude futures gained 45 cents, or 0.5%, to $85.39 a barrel by 0352 GMT. West Texas Intermediate U.S. crude was up 40 cents, or 0.5%, to $81.11 a barrel.

The rises came as an industry report showed U.S. crude stocks fell by about 4.3 million barrels in the week ended March 31. The official inventory report by the U.S. Energy Information Administration is due at 1430 GMT on Wednesday.

Continuing to add support were the latest targets to reduce supplies set by the Organization of Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+.

"Energy traders are still digesting the OPEC+ surprise production cut and any news that suggests the oil market will remain even tighter is going to send prices even higher," said Edward Moya, an analyst at OANDA.