Oil rises ahead of OPEC+ meeting

Oil prices rose after an industry report showed a decline in U.S. crude inventories ahead of an OPEC+ meeting expected to approve current supply cuts. Brent crude is trading around $89 a barrel after closing at the highest level since October on Tuesday. U.S. crude is around $85. The American Petroleum Institute said nationwide inventories fell by more than 2 million barrels last week, people familiar with the figures said. Estimates before official data is released later Wednesday showed declines in gasoline and distillate inventories as well. OPEC and its allies are set to review crude markets and supply policy at an online meeting on Wednesday, with officials from member countries predicting their overall strategy will remain unchanged. Crude has risen this year as Ukraine’s attacks on Russian energy infrastructure and tensions in the Middle East have supported prices. OPEC’s restrictions are tightening the market even as some members have stalled on implementing the full agreed-upon cuts and Russian exports have risen. "With OPEC+ already extending voluntary output cuts until mid-year, the virtual OPEC+ meeting later today is likely to reaffirm the group's current policy. Brent crude futures are likely to hover near $75 to $80 a barrel in the coming months, given our view that Chinese oil demand growth will disappoint," said Vivek Dhar, an analyst at Commonwealth Bank of Australia.