Oil gained on Wednesday ahead of an expected extension to production curbs by OPEC and its allies, with further support from industry data showing a larger than forecast drop in U.S. crude stockpiles.
Brent crude futures were up $1.13, or 1.9%, at $61.96 a barrel. U.S. West Texas Intermediate (WTI) crude futures were up by 93 cents, or 1.6%, at $57.02.
The Organization of the Petroleum Exporting Countries (OPEC) and allies that include Russia - a group known as OPEC+ - could approve deeper crude output cuts when they meet in Vienna this week.
Iraqi oil minister Thamer Ghadhban told reporters in Vienna on Tuesday that “a deeper cut is being preferred by a number of key members”.
There is still some market scepticism over over a deepending of cuts, though it is accepted that the producer group is keen to support prices, with many analysts expecting an extension of the existing supply pact.
Source : Reuters