Crude Prices Rise Ukraine Strikes Russia OPEC+ Delays Output

Crude Prices Rise Ukraine Strikes Russia OPEC+ Delays Output

Brent crude futures for January rose 28 cents, or 0.4%, to $73.09. U.S. West Texas Intermediate crude futures for January rose 28 cents, or 0.4%, at $69.03.

Ukraine fired a volley of British Storm Shadow cruise missiles into Russia on Wednesday, the latest new Western weapon it has been permitted to use on Russian targets a day after it fired U.S. ATACMS missiles.

Moscow has said the use of Western weapons to strike Russian territory far from the border would be a major escalation in the conflict. Kyiv says it needs the capability to defend itself by hitting Russian rear bases used to support Moscow’s invasion, which entered its 1,000th day this week.

Meanwhile, U.S. crude stocks rose by 545,000 barrels to 430.3 million barrels in the week ended Nov. 15, the Energy Information Administration said, compared with analysts’ expectations in a Reuters poll for a 138,000-barrel rise.

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Gasoline inventories last week rose more than forecast, while distillate stockpiles posted a larger-than-expected draw.

Adding to supply, Norway’s Equinor (EQNR.OL), opened a new tab and said it had restored full output capacity at the Johan Sverdrup oilfield in the North Sea following a power outage.

Meanwhile, the Organization of the Petroleum Exporting Countries and its allies led by Russia, the group known as OPEC+, may push back output increases again when it meets on Dec. 1 due to weak global oil demand, according to three OPEC+ sources familiar with the discussions.

OPEC+, which pumps around half the world’s oil, had initially planned to gradually reverse production cuts with minor increases spread over several months in 2024 and 2025.

However, a slowdown in Chinese and global demand, coupled with rising output outside the group, has potentially thwarted this plan.