18.11.202009:32:00UTC+00Oil Prices Climb On Hopes For Delay In Supply Increase

Oil prices rose over 1 percent on Wednesday amid expectations that OPEC+ will keep existing its current production cuts further into 2021, or even increase the cuts.

The ministerial committee meeting on Tuesday ended with overall support for extending the production cuts by three months, but there was no formal recommendation. A decision is likely at their upcoming full ministerial meeting on Nov. 30 and Dec. 1.

Benchmark Brent crude for January delivery climbed 1.2 percent to $44.28 per barrel while WTI crude futures were up 1.1 percent at $42.12.

The expectations that OPEC and its allies will delay a planned rise in oil output offset investor concerns over weaker U.S. consumption in light of the Covid-19 resurgence.

A report released by the U.S. Commerce Department showed overnight that U.S. retail sales increased less than expected in October, restrained by spiraling new Coid-19 infections and declining household income.

The American Petroleum Institute (API) reported on Tuesday a build in crude oil inventories of 4.174 million barrels for the week ending November 13 while analysts had predicted an inventory build of 1.95-million barrels.