Oil prices rose in early Asian trading on Wednesday, supported by shrinking global crude supplies ahead of a meeting of a committee of OPEC+ ministers.
Price action
By 0004 GMT, Brent crude futures rose six cents to $90.98 per barrel, while US West Texas Intermediate crude rose 11 cents to $89.34 per barrel, according to Reuters data.
The OPEC+ group, which includes the Organization of the Petroleum Exporting Countries and its allies, is expected to keep production policy unchanged when it meets on Wednesday, after Saudi Arabia and Russia, which are members of the group, extended their production cuts until the end of the year.
A survey conducted by Reuters showed that Saudi Arabia is expected to raise the official selling price of Arab Light crude for November to Asia, for the fifth month in a row.
Interfax news agency quoted Russian Deputy Prime Minister Alexander Novak as saying that Russia will not set a time frame for the fuel export ban it imposed last month, which will remain in place as long as necessary to stabilize prices and address shortages in the domestic market.
Regarding US supplies, sector data showed a decline in crude stocks by about 4.2 million barrels in the week ending September 29, according to the American Petroleum Institute on Tuesday.
US government data on inventories is scheduled to be released on Wednesday. The average forecast of eight analysts polled by Reuters indicates a decline in crude inventories of about 500,000 barrels in the week ending September 29.
Prices have been under pressure in recent days due to the strength of the dollar, which rose to its highest level in 10 months against a basket of major currencies yesterday, Tuesday, after data on job vacancies in the United States indicated continued strength in the labor market, which may prompt the Federal Reserve (the central bank). To raise interest rates next month.
High interest rates and a stronger dollar increase the cost of oil for holders of other currencies, which may weaken demand for it.
