Oil falls on expectations of OPEC extending supply cuts

Oil prices fell after two days of gains as signs of rising U.S. inventories competed with expectations that OPEC+ will extend supply cuts. Global benchmark Brent crude fell to $83 a barrel after rising 2.5 percent in the first two sessions of the week on strength in physical markets. U.S. crude was below $79. The industry-funded American Petroleum Institute said crude inventories nationwide, including at the Cushing, Oklahoma, storage hub, had risen by more than 8 million barrels. Official data on U.S. inventories are due later Wednesday. If they confirm an expansion, it would mark a fifth week of gains for the largest oil consumer. While prices remain relatively narrow, crude is still on track for a second monthly gain. The progress has been supported by supply cuts from OPEC and its allies, which are widely expected to agree to extend the cuts into the second quarter to support the market. Prices have also been supported by tensions in the Middle East. Crude markets appear to be fairly stable around $80 a barrel, Vitol Group chief Russell Hardy told International Energy Week in London. He said oil markets were much less fragile than a few years ago because of the introduction of sanctions regimes into the system.