Oil maintains gains as countdown begins for high-stakes OPEC+ supply meeting

Global benchmark Brent traded below $82 a barrel after recording a rise of more than 2% on Tuesday. US crude remained below $77. According to delegates, the OPEC+ group will meet online on Thursday to determine its 2024 policy, but it has yet to resolve a dispute over production quotas for some African members.

The rise in crude oil was supported by a decline in the dollar, as the Bloomberg gauge of the US currency fell to its lowest level since August. Comments from Fed policymakers, including Governor Christopher Waller, suggested that the central bank is prepared to stop interest rate hikes. A weaker dollar makes commodities more attractive to overseas buyers.

Yeap Jun Rong, a market strategist at IG Asia Pte in Singapore, said, "The US dollar has fallen due to dovish expectations, which has largely supported oil prices." Meanwhile, he added, "all eyes will be on whether the bloc can do more to support prices."

Oil is continuing a streak of monthly declines as supply from countries outside the Organization of the Petroleum Exporting Countries increases, which adds pressure on the group and its allies for deeper production cuts. The International Energy Agency said earlier this month that the global crude market is on track to return to a surplus next year.

Meanwhile, in the US, the industry-funded American Petroleum Institute reported that nationwide stockpiles fell by 817 thousand barrels last week, according to people familiar with the figures. Inventories at Cushing also declined. If confirmed by government data later on Wednesday, this would be the first drop in six weeks in levels both nationwide and at the key oil storage hub.

News Source: 12punto