Oil rises after draw in U.S. stocks, eyes on OPEC+ decision

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Oil prices rose on Wednesday towards last week's seven-year highs after data showing a fall in U.S. crude stocks underlined solid demand, but investors remained cautious ahead of an OPEC+ meeting due later in the day.

Brent crude climbed 36 cents, or 0.4%, to $89.52 a barrel by 0123 GMT, after easing 10 cents on Tuesday.

"A drop in U.S. crude inventories provided support, though an increase of gasoline stocks partially offset bullish sentiment," said Satoru Yoshida, a commodity analyst with Rakuten Securities. U.S. crude stocks fell by 1.6 million barrels for the week ended Jan. 28, against analysts' estimate of an increase of 1.5 million barrels, according to market sources citing American Petroleum Institute figures on Tuesday.

The Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, will likely stick to existing policies of moderate output increases on Wednesday, five sources from the producers' group said, even as it expects demand to rise to new peaks this year and as oil prices trade near their seven-year highs.But Goldman Sachs said there was a chance the oil market's rally would prompt a faster ramp-up.

 

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