Oil rises on tightening crude supply

Brent crude oil price news: Oil rose in early Asian trade on Wednesday, supported by tightening global crude supply ahead of a panel meeting of OPEC+ ministers. Brent crude oil futures rose 6 cents to $90.98 a barrel by 0004 GMT, while US West Texas Intermediate crude (WTI), rose 11 cents to $89.34 per barrel. The Organization of the Petroleum Exporting Countries and allies, or OPEC+, is expected to keep output policy unchanged when it meets on Wednesday, after members Saudi Arabia and Russia extended output cuts to the end of the year.

Saudi Arabia is expected to raise its November official selling price of Arab Light crude to Asia for a fifth straight month, according to a Reuters survey. Russia is setting no time frame for a fuel export ban it introduced last month, and which will remain in place as long as necessary to stabilize prices and address shortages on the domestic market, Interfax cited Deputy Prime Minister Alexander Novak as saying. In US supply, industry data showed crude stocks fell by about 4.2 million barrels in the week ended Sept. 29, according to market sources citing American Petroleum Institute figures on Tuesday.

US government data on stockpiles is due on Wednesday. Eight analysts polled by Reuters estimated on average that crude inventories fell by about 500,000 barrels in the week to Sept. 29. Prices have been pressured in recent days by the strength of the US dollar (.DXY), which rose to a 10-month high against a basket of major peers on Tuesday after US job openings data pointed to a still-tight labour market that could prompt the Federal Reserve to raise interest rates next month.

Higher interest rates and a stronger dollar make oil more expensive for holders of other currencies, which could dampen oil demand. Investors are also eyeing political turmoil in Washington Republicans in the US House of Representatives on Tuesday ousted their leader for the first time in history, as party infighting plunged Congress into further chaos just days after it narrowly averted a government shutdown.