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Written by Katya Golubkova and Jeslyn Lerh
SINGAPORE (Reuters) – Oil prices rose on Wednesday as supplies from Russia and OPEC members remained firm as data showing an unexpected increase in U.S. jobs showed expanding economic activity and growth in oil demand.
it was up 28 cents, or 0.36%, at $77.33 a barrel at 0415 GMT. US West Texas Intermediate crude rose 40 cents, or 0.54%, to $74.65.
Oil output by the Organization of the Petroleum Exporting Countries fell in December after two months of increases, a Reuters poll showed. The maintenance of plantations in the United Arab Emirates moderates the rise in Nigerian production and profits elsewhere in the group.
In Russia, oil production was about 8.971 million barrels per day in December, below the country’s target, Bloomberg reported citing the energy ministry.
On the economic side, job openings increased in the United States in November and the number of layoffs was low, while workers were reluctant to quit, the Job Openings survey showed. Personnel Change.
“Strong US economic data continues to boost US economic prospects and demand for oil, supported by a sharper-than-expected decline in crude oil, ” said IG market strategist Yeap Jun Rong.
“After a long sell-off since October last year, the selling pressure may have worn off for now, paving the way for a modest recovery,” said Yeap.
Oil prices fell last week as fuel prices rose, market sources said, citing figures from the American Petroleum Institute on Tuesday.
Going forward, analysts expect oil prices to fall on average this year through 2024 due in part to increased production from non-OPEC countries.
“We are maintaining our forecast for Brent crude to average $76/bbl in 2025, up from an average of $80/bbl in 2024,” BMI, part of Fitch Group, said in a note to clients.
“The bearish view is led by our primary data forecast, which points to oversupply this year, with supply growth outstripping demand growth by 485,000 barrels per day.”
