Written by Ghislaine Lehr
SINGAPORE (Reuters) – Oil prices rose on Wednesday as supplies from Russia and members of the Organization of the Petroleum Exporting Countries (OPEC) tightened, while data showing an unexpected increase in the number of job vacancies in the United States pointed to expanding economic activity and consequent growth in demand. On oil.
By 07:30 GMT, Brent crude rose 37 cents, or 0.5 percent, to $77.42 per barrel. US West Texas Intermediate crude rose 44 cents, or 0.6%, to $74.69.
A Reuters survey showed that output from the Organization of the Petroleum Exporting Countries fell in December after two months of increases. Field maintenance in the UAE offset higher Nigerian production and gains elsewhere in the group.
In Russia, oil production averaged 8.971 million barrels per day in December, below the target set by the country, Bloomberg reported, citing the Energy Ministry.
On the economic front, the number of job openings in the United States rose in November and the number of layoffs was low, while workers were reluctant to quit, the Job Opportunities and Labor Turnover Survey showed.
“Strong US economic data continues to bolster the outlook for the US economy and oil demand, further supported by a larger-than-expected draw in crude oil inventories,” said Yip Jun Rong, market strategist at IG.
“After trading within a narrow range for a prolonged period since October last year, selling pressure may have exhausted by now, paving the way for a modest recovery,” Yip said.
Market sources, citing American Petroleum Institute figures, said on Tuesday that US crude oil inventories decreased last week while fuel inventories rose.
Going forward, analysts expect oil prices to fall on average this year compared to 2024, partly due to increased production from non-OPEC countries.
“We are sticking to our outlook for Brent crude to average $76 per barrel in 2025, down from an average of $80 per barrel in 2024,” BMI, a subsidiary of Fitch Group, said in a note to clients.
“The bearish view is led by our outlook for fundamental data, which points to an oversupply this year, with supply growth outpacing demand growth by 485,000 barrels per day.”
(Reporting by Katya Golubkova in Tokyo and Ghislaine Lehr in Singapore; Editing by Christopher Cushing and Kirsten Donovan)