Oil Holds Hefty Advance on OPEC+ Deal Progress, Iran Sanctions
Oil steadied after the biggest advance in more than two weeks as OPEC+ made progress toward a deal to hold output steady, and the US imposed more sanctions on Iranian crude.
West Texas Intermediate traded near $70 a barrel after a 2.7% jump on Tuesday, while Brent closed below $74. The producer group is edging closer to an agreement to push back a plan to revive output by a further three months, delegates said. Meanwhile, the US sanctioned 35 entities and vessels that it said played a critical role in the transport of Iranian crude.
Crude remains caught in a tight range, trading within a roughly $6 band since the middle of October, with prices buffeted by competing drivers including the imminent Donald Trump presidency, geopolitical tensions in the Middle East and Russia, and a lackluster demand outlook from top importer China. With widespread concern that the global market faces a glut next year, OPEC+ members are due to meet on Thursday to review supply policy for 2025.
In the US, the American Petroleum Institute reported nationwide crude stockpiles rose by 1.2 million barrels last week, with large builds also seen in inventories of gasoline and distillates, a category that includes diesel.
WTI for January delivery rose 0.1% to $70.03 a barrel at 7:27 a.m. in Singapore.
Brent for February settlement closed 2.5% higher at $73.62 a barrel on Tuesday.
Source : Bloomberg
