Oil Rises with OPEC+ Expected to Extend Output Cuts

Oil prices rose on Wednesday, despite the strong surge in crude inventories in the United States, supported by expectations that OPEC+ could be extending output cuts until the end of April.

Recent reports suggested that the Organization of the Petroleum Exporting Countries (OPEC) and other major producers that form an alliance known as OPEC+ could ease production cuts in their upcoming meeting, but today expectations surfaced that some producers could lean towards extending output curbs, but it remains possible that production levels could be increased.

Brent crude futures for May delivery gained $1.37, or 2.2%, to close at the level of $64.07 per barrel.

Meanwhile, the West Texas Intermediate (WTI) crude futures for April delivery finished higher by $1.53, or 2.6%, at $61.28 per barrel.

Earlier today, data from the Energy Information Administration (EIA) showed that U.S. oil inventories grew by 21.6 million barrels last week. The weekly report also indicated that gasoline stockpiles declined by 13.6 million barrels, while distillate inventories fell by 9.7 million barrels for the week ending on February 26.