Oil firm on US crude stocks and China optimism, Opec+ talks limit gains

Oil prices firmed in Asian trade on Wednesday on falling US crude inventory figures from American Petroleum Institute, a lower greenback and some optimism on the outlook for China’s demand and economy.

A high likelihood that Opec+ would leave output unchanged at its upcoming meeting limited gains. Brent crude futures had firmed 70 cents or 0.84 per cent to $83.73 per barrel by 0732 GMT, while US West Texas Intermediate (WTI) crude futures climbed 56 cents or 0.72 per cent to $78.76 per barrel.

The market is still in a contango structure, with forward month futures trading higher than the prompt month futures.

Helping to boost prices, US crude oil stocks were expected to have dropped by about 7.9 million barrels in the week ended on November 25, according to market sources citing American Petroleum Institute figures on Tuesday.

Official figures are due from the US Energy Information Administration on Wednesday.

Optimistic sentiment in relation to China contributed to the uptrend in the Asian afternoon trade.