Oil prices rise but OPEC unlikely

Oil prices rose in early Asian trade on Wednesday as U.S. crude inventories fell but concerns thatOPEC would leave output policy unchanged at its upcoming meeting limited gains.

The price of crude oil was up 65 cents or 0.8 per cent at $83.68 per barrel at the time of 0132 GMT, while the U.S. West Texas Intermediate WTI crude futures rose 68 cents or 0.9 per cent to $78.88 per barrel.

U.S. crude oil stocks dropped by 7.9 million barrels in the week ending Nov. 25, according to market sources, according to American Petroleum Institute figures on Tuesday. The API S gasoline inventories rose by about 2.9 million barrels, while distillate stocks rose by about 4.0 million barrels, according to the sources who spoke on condition of anonymity.

The U.S. Energy Information Administration will release official figures on Wednesday.

The market was watching the upcoming meeting of the Organization of the Petroleum Exporting Countries and allies, known as OPEC OPEC, which is likely to keep oil output policy unchanged at the meeting on Sunday, five OPEC sources said, although two sources said an additional production cut was also likely to be considered to support prices.

The group meets as slowing economies and Chinese COVD 19 lock downs hit oil demand, while a European Union ban on Russian crude imports and a G 7 price cap on Russian crude raises questions about supply.

The International Energy Agency expects Russian crude production to be curtailed by some 2 million barrels of oil per day by the end of the first quarter next year, according to Fatih Birol, the chief of the Russian energy agency.