Author: Káťa Golubková
TOKYO (Reuters) – Oil prices rose on Wednesday as supplies from Russia and OPEC members tightened, while data showing an unexpected increase in U.S. jobs pointed to expanding economic activity and subsequent growth in oil demand.
It was up 32 cents, or 0.42%, at $77.37 a barrel at 01:35 GMT. U.S. West Texas Intermediate crude was up 42 cents, or 0.57%, at $74.67.
Oil production from the Organization of the Petroleum Exporting Countries fell in December after two months of growth, a Reuters poll showed. Field maintenance in the UAE offsets increases in Nigerian production and profits elsewhere in the group.
Russia's crude output averaged 8.971 million barrels per day in December, short of the country's target, Bloomberg reported.
On the economic front, U.S. job vacancies rose in November and layoffs were low, while workers were reluctant to quit, the jobs and labor turnover survey showed. Oil prices rise with economic growth.
“The November JOLTS data, coupled with recent employment reports, show that the labor market is returning to pre-pandemic norms,” Capital Economics said in a note to clients.
Elsewhere in the US, stocks fell last week while fuel stockpiles rose, market sources said, citing data from the American Petroleum Institute on Tuesday.
Looking ahead, analysts expect oil prices to average lower this year than in 2024, partly due to increased production from non-OPEC countries.
“We stick to our forecast for Brent to average $76/bbl in 2025, down from an average of $80/bbl in 2024,” BMI, a division of Fitch Group, said in a note to clients.
“The bearish view is driven by our fundamentals forecast, which points to a supply glut this year, with supply growth outstripping demand growth by 485,000 barrels per day.”
