Oil jumps 4% ahead of OPEC meeting

Major producers will discuss how to respond to the threat of a hit to fuel demand from the Omicron variant.

Oil prices rebounded Wednesday morning following steep losses on Tuesday.

U.S. West Texas Intermediate (WTI) crude futures rose $2.78, or 4.2%, to $69.02 a barrel, after a 3.9% drop on Tuesday.

Brent crude futures gained $3.16, or 4.6%, to $72.42 a barrel, after a 5.4% slump on Tuesday.

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Major producers will discuss how to respond to the threat of a hit to fuel demand from the omicron variant.

OPEC and its allies begin two days of meetings to decide whether to release more oil into the market or restrain supply amid an oil price rout, according to Reuters.

Ticker Security Last Change Change %
USO UNITED STATES OIL FUND L.P. 61.86 +0.18 +0.29%
BNO UNITED STS BRENT OIL FD LP UNIT 23.93 +0.10 +0.42%
UGA UNITED STATES GASOLINE FUND LP PARTNERSHIP UNITS 46.86 +0.84 +1.83%

Plans seem mixed as some some analysts expect OPEC+ will pause plans to add 400,000 barrels per day of supply in January, however several OPEC+ ministers have said there was no need to change course.

A Reuters survey found OPEC pumped 27.74 million bpd in November, up 220,000 bpd from the previous month, but that was below the 254,000 bpd increase allowed for OPEC members under the OPEC+ agreement.

Data from the American Petroleum Institute industry group showed U.S. crude stocks fell by 747,000 barrels in the week ended Nov. 26, according to market sources, which was a smaller decline than expected.

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The estimate was for crude stockpiles to fall by about 1.2 million barrels.