Oil prices rose on Wednesday after Oil Minister Jabbar Ali al-Luaibi said Opec and other producers were considering extending the cut-off deal or increasing volumes to reduce global supply glut while a report showed a lower-than-expected increase in US stockpiles.
US WTI crude futures rose 33 cents, or 0.6 percent, to $ 49.78 a barrel by 0630 GMT. Brent crude futures were up 22 cents, or 0.4 percent, at $ 55.37 a barrel. Oil Minister Jabbar al-Luaibi said at an energy conference in the UAE on Tuesday that while OPEC and other producers were considering options to extend the cut-off agreement for other months, it was too early to say what would happen after the agreement ended in March. Some producers believe the agreement should be extended for another three or four months, while others say the tide should be until the end of 2018. Some, including Ecuador and Iraq, believe more cuts are needed.
US crude oil inventories rose 1.4 million barrels in the week ending September 15 to 470.3 million barrels versus expectations of a 3.5 million barrel increase, the US Petroleum Institute said. Crude stocks at the delivery point in Cushing, Oklahoma, increased by 422,000 barrels.
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