By Alex Lawler
LONDON (Reuters) -Oil firmed on Thursday, edging up from multi-month lows, due to a possible delay to output increases by OPEC+ producers and a decline in U.S. inventories, though gains were capped by persistent demand concerns.
Figures from the American Petroleum Institute (API) showed {{8849|U.S. crcrude oil inventories fell by 7.431 million barrels last week, far exceeding the 1 million barrel draw expected by analysts in a Reuters poll. [API/S]
“There is a pause of breath and light reprieve for oil prices,” said PVM analyst John Evans, citing the API report’s findings.
Brent crude for November was up 66 cents, or 0.9%, to $73.36 a barrel at 1300 GMT after touching its lowest since December on Wednesday. U.S. West Texas Intermediate crude for October was up 64 cents, or 0.9%, at $69.84.
Further support came from discussions between the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, known collectively as OPEC+, about delaying output increases due to start in October, sources told Reuters on Wednesday.
Any decision by OPEC+ might be taken negatively by the market, HSBC said in a report.
“Raising production would tip the market into a meaningful surplus from Q1 2025 onwards. On the other hand, holding off may be interpreted as a belated admission by OPEC that oil demand is weak.”
OPEC+ had been ready to proceed with an output increase of 180,000 barrels per day (bpd) in October, part of plans for a gradual unwinding of its most recent cuts of 2.2 million bpd.
However, continued soft demand in China and the potential end of a dispute halting Libyan oil exports has pushed the group to reconsider.
Official U.S. oil stocks data from the Energy Information Administration (EIA) is due at 1430 GMT. [EIA/S]
Financial markets were also awaiting further U.S. macroeconomic indicators due later on Thursday and Friday, including jobs data.
