Singapore — Oil prices rose in Asia on Wednesday after hitting their highest in about a year in the previous session, supported by an unexpected draw in US crude stockpiles and an Opec+ estimate of a global oil market deficit in 2021.
US West Texas Intermediate crude futures climbed 24c, or 0.4%, to $55.00 a barrel at 4.47am GMT, for a third consecutive day of gains. The benchmark hit a one-year high of $55.26 on Tuesday. Analysts said the market was buoyed by the latest assessment by Opec and allies, together known as Opec+, that oil stockpiles will decline to below a five-year average by June.“The strategy was very clear. Opec and allies set out to cut a deal that would normalise global excess inventory through 2021 — well, they’re on track,” said Lachlan Shaw, head of commodity research at National Australia Bank.
A ministerial meeting will convene on Wednesday, though it is not expected to recommend any adjustments to oil output policy.