Oil prices rose on Wednesday as supplies from Russia and OPEC members tightened. An unexpected increase in U.S. job postings also pointed to expanding economic activity and, in turn, growing oil demand.
Brent crude rose 28 cents, or 0.36%, to $77.33 a barrel by 0415 GMT. WTI crude rose 40 cents, or 0.54%, to $74.65.
The Organization of the Petroleum Exporting Countries showed that oil production fell in December after two months of growth. This was offset by field maintenance in the United Arab Emirates, increased production in Nigeria, and gains elsewhere in the group.
On the supply side, Russian oil production averaged 8.971 million barrels a day in December, below the country’s target.
Economically, job openings in the US increased in November, layoffs were low and workers are reluctant to quit. The outlook for oil demand continues to strengthen, with a strong US economy further supported by a larger-than-expected decline in crude oil inventories.
Selling pressures that have been trading in a narrow range since October last year may have subsided for now, paving the way for a modest recovery.
US crude oil inventories fell last week and fuel inventories rose, according to figures from the American Petroleum Institute (API) on Tuesday.
Analysts expect oil prices to fall on average this year, in part due to production increases in non-OPEC countries.
Brent crude is still forecast to average $76/bbl in 2025, down from an average of $80/bbl in 2024.
This view is driven by fundamental data forecasts that show a glut this year and supply growth will outstrip demand growth by 485,000 bpd
