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Oil prices rise due to tight supply and inventory uncertainty

Oil prices rose slightly at the start of Asian trading on Friday as nations seek to address global shortages of crude oil and fuel.

Brent crude futures were up 39 cents, or 0.4%, at $110.44 a barrel at 0012 GMT, while US West Texas Intermediate (WTI) crude futures were up 37 cents, at $104.31 a barrel.

OPEC and allied producing nations, including Russia, will likely stick to an accelerated production increase plan in August in hopes of lowering crude prices and inflation as the US president Joe Biden plans to visit Saudi Arabia, sources said.

The group known as OPEC+ agreed at its last meeting on June 2 to increase production by 648,000 barrels per day in July, or 7% of global demand, and by the same amount in August, up compared to the original plan to add 432,000 barrels per day. one month out of three months until September.

However, the group has struggled to meet monthly increase targets due to underinvestment in oilfields by some OPEC members and, more recently, Russian production losses.

Major U.S. oil refiners and Energy Secretary Jennifer Granholm walked out of an emergency meeting on the issue without concrete solutions to cut prices, a source familiar with the talks says, but the two sides agreed to work together.

Official weekly estimates of U.S. oil inventories were due to be released on Thursday, but technical issues will delay those numbers until next week, the U.S. Energy Information Administration said, without giving a specific timeline.

First post: STI


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