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Oil rises more than 1 percent before OPEC meeting

Reuters  |  NEW YORK 

By Stephanie Kelly

NEW YORK (Reuters) - prices rose more than 1 percent on Wednesday ahead of a meeting of the world's biggest exporters who will discuss cutting output to help shore up prices and curb excess supply.

The Organization of the Petroleum Exporting Countries, and other producers will meet in this week to discuss a potential cut in production. has indicated it wants OPEC and its allies to cut output by at least 1.3 million barrels per day.

Russian Minister told reporters he had held a "good" meeting with his Saudi counterpart on Wednesday and that they would have more talks.

OPEC is keen to avert the kind of build-up in global inventories that sent prices tumbling for more than a year and a half from late 2014. At the start of 2016, benchmark Brent was trading below $30 a barrel.

Brent crude futures rose 89 cents to $62.97 a barrel, a 1.4 percent gain, by 11:13 a.m. EST (1613 GMT). U.S. Intermediate (WTI) crude futures rose 82 cents to $54.07 a barrel, a 1.5 percent gain.

"The market is expecting that OPEC is going to announce production cuts," said Mayor, global and at "There has been quite a lack of discipline of late. When you look at U.S. shale production and Saudi production and production, everyone has the pedal to the "

U.S. pressured OPEC not to reduce output.

"Hopefully OPEC will be keeping flows as is, not restricted. The World does not want to see, or need, higher oil prices!" Trump wrote on on Wednesday.

Saudi Arabian crude supply in November rose to 11.3 million barrels per day, a source familiar with the matter said.. That marks a rise from October's 10.65 million bpd.

U.S. crude inventories rose by 5.4 million barrels in the week to Nov. 30 to 448 million, data from industry group the showed on Tuesday.

inventory data is due on Thursday, delayed by one day. A survey forecast a decline of 900,000 barrels.

(Additional reporting by in London and Henning Gloystein in Singapore; Editing by David Evans, and David Gregorio)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, December 05 2018. 22:04 IST