Oil Prices Surge Ahead of Crucial OPEC+ Supply Decision

Oil prices rise Thursday ahead of a late-day OPEC+ meeting, investors wait for the producer group to take a cut and monitor Middle Eastern volatility.

Brent crude futures jumped 12 cents (0.2%) to $72.43 a barrel at 0103 GMT, while US crude futures gained 16 cents (0.2%) to $68.70 a barrel.

Both gauges dropped nearly 2% on Wednesday.

The OPEC+ bloc, whose members and their OPEC+ partners start working on Thursday at 1100 GMT, will oil production cuts in their most recent round by three months at least from January, OPEC+ sources told Reuters, to shore up the market.

"It is going to be a scramble to see if OPEC+ wants to jack up the price with further production cuts, or preserve its dominance in the world’s crude oil market by compromising those cuts," said Satoru Yoshida, commodity strategist at Rakuten Securities.

"OPEC+ may spark a short-term reaction, but the market will pick up before the end of the year on a US recovery with the Trump administration and high tension in the Middle East," he added.

The Energy Information Administration (EIA) reported that U.S. crude futures stocks dropped last week beyond expectations as refiners ramped up production. Stockpiles of gasoline and distillate rose more than expected over the week.

The Israeli military collapse of Lebanon’s Hezbollah has severely diminished Lebanon’s Hezbollah, but the Iran-backed organization will attempt to recover its forces and weapons and remain a long-term risk to the U.S. and its regional allies, four sources told in on current U.S. news.

Meanwhile, Donald Trump’s Middle East tensions adviser has visited Qatar and Israel to start the U.S. president-elect’s diplomatic push to help broker a Gaza ceasefire and release of hostages before his January 20 inauguration, a person familiar with the talks told Reuters. The meetings on this issue is quite important to conduct to resolve it quickly.