Oil prices rose on Wednesday as supplies from Russia and OPEC members tightened while data showing an unexpected increase in U.S. jobs openings pointed to expanding economic activity and consequent growth in oil demand.
Brent crude was up 28 cents, or 0.36%, to $77.33 a barrel at 0415 GMT. U.S. West Texas Intermediate crude climbed 40 cents, or 0.54%, to $74.65.
Oil output from the Organization of the Petroleum Exporting Countries fell in December after two months of increase, a Reuters survey showed. Field maintenance in the United Arab Emirates offset a Nigerian output hike and gains elsewhere in the group.
In Russia, oil output averaged 8.971 million barrels a day in December, below the country’s target, Bloomberg reported citing the energy ministry.
On the economic front, job openings rose in the United States in November and the number of layoffs was low, while workers were reluctant to quit, the Job Openings and Labor Turnover Survey showed.
“Robust U.S. economic data continues to bolster the outlook for the U.S. economy and oil demand, further supported by a larger-than-anticipated drawdown in crude inventories,” said IG market strategist Yeap Jun Rong.
“After trading within a prolonged tight range since October last year, selling pressures may have been exhausted for now, paving the way for a modest recovery,” Yeap said.
U.S. crude oil stocks fell last week while fuel inventories rose, market sources said, citing American Petroleum Institute figures on Tuesday.
Going forward, analysts expect oil prices to be on average down this year from 2024 due in part to production increases from non-OPEC countries.
“We are holding to our forecast for Brent crude to average $76/bbl in 2025, down from an average of $80/bbl in 2024,” BMI, a division of Fitch Group, said in a client note.
“The bearish view is being led by our fundamental data forecast, which points to an oversupply this year, with supply growth outstripping demand growth by 485,000 barrels per day.”
(Reporting by Katya Golubkova in Tokyo and Jeslyn Lerh in Singapore; Editing by Christopher Cushing)