Oil gains on U.S. crude stocks decline, focus on OPEC+ meeting

Oil prices gained on Wednesday after a steep decline in U.S. crude stockpiles, while markets await OPEC’s next steps on supply cuts to be announced after a meeting later today.

Brent crude futures rose 0.2%, or 10 cents, at $43 per barrel. U.S. West Texas Intermediate crude futures were up 0.4%, or 14 cents, at $40.43 per barrel.

U.S. crude stockpiles dropped by 8.3 million barrels in the week ended July 10, significantly bigger than analysts’ expectations of a 2.1-million-barrel decline. 

Meanwhile, key members of the OPEC+ will meet for the Joint Ministerial Monitoring Committee (JMMC) later today to assess whether to extend the 9.7 million bpd output cut or to ease them to 7.7 million bpd.

In June, OPEC+ reported 107% compliance with its supply cuts. The bloc said in its monthly report that global oil demand would rise by a record 7 million bpd in 2021 as the global economy recovers from the pandemic. However, these numbers would remain below pre-pandemic levels.