Oil gained Wednesday, changing course after Biden administration said it would not call on US producers to increase crude output, and that efforts to increase OPEC production were a longer-range plan
By Jessica Resnick-Ault
NEW YORK (Reuters) -Oil gained Wednesday, changing course after the Biden administration said it would not call on U.S. producers to increase crude output, and that efforts to increase OPEC production were a longer-range plan.
The market was also bolstered by a government report showing U.S. crude supplies fell last week, shifting the spotlight away from production from the Organization of the Petroleum Exporting Countries.
Brent crude is up about 35% this year, supported by OPEC-led supply curbs, even after the global benchmark oil last week suffered the steepest weekly loss in four months on worries that travel restrictions to curb coronavirus infections would hit demand.
Brent was up 48 cents, or 0.7%, to $71.13 a barrel by 1:09 p.m. ET (1509 GMT), following a 2.3% rally on Tuesday. Earlier in the session, it had dipped to a low of $69.07 a barrel.
U.S. West Texas Intermediate (WTI) was up 65 cents, or 0.9%, to $68.94, after a 2.7% jump on Tuesday.
Prices fell early in the session after the White House said in a statement that the Biden administration had urged OPEC and its partners to boost production.
The market reversed course after the White House later said its outreach to OPEC members and its oil-producing allies are ongoing and aimed at long-term engagement, not necessarily an immediate response.
The administration added that it had not called upon U.S. producers to ramp up production, which led the market to turn higher, said Phil Flynn, a senior analyst at Price Futures Group in Chicago.
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