Oil gains ahead of OPEC+ meeting, boosted by fall in U.S. stockpiles

TOKYO, Dec 4 (Reuters) - Oil prices rose on Wednesday in
advance of a meeting of OPEC and its allies to discuss whether
to extend production curbs to support the market and following
industry data showing that U.S. crude stockpiles fell more than
expected.
Brent crude LCOc1 futures were up 28 cents, or 0.5%, at
$61.10 a barrel by 0151 GMT.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were
up by 27 cents, or 0.5%, at $56.37.
The Organization of the Petroleum Exporting Countries (OPEC)
and allies that include Russia - a group known as OPEC+ - are
preparing to approve deeper crude output cuts this week, when
they meet in Vienna, according to Iraq, the group's
second-biggest producer.
Thamer Ghadhban, the oil minister of Iraq, told reporters on
Tuesday in Vienna that "a deeper cut is being preferred by a
number of key members". There is still some scepticism in the market over whether
OPEC will cut output further, however, with many analysts
expecting only an extension of existing cuts.
"We ... think OPEC could announce an extension to supply
cuts to cover the whole of 2020 rather than the three to six
months the market is currently factoring in," BNP Paribas
Markets said in a note.
An extension "with an option to review policy at the next
meeting, would send a strong message of commitment by
signatories of the Declaration of Cooperation," the BNP Paribas
analysts said.
OPEC members meet on Thursday and then on Friday the OPEC+
group meets. OPEC+ has been curbing supply since 2017.
On the supply side, crude inventories in the U.S. fell by
more than expected last week, according to the industry group
American Petroleum Institute (API). Stockpiles of crude oil fell
by 3.7 million barrels, more than double expectations of a
decline of 1.7 million barrels. API/S
Gasoline and distillate stocks increased, however, and the
market will be looking for confirmation of the crude draw when
official figures come out from the U.S. Department of Energy's
Energy Information Administration later on Wednesday. EIA/S
Keeping a lid on prices are the dwindling prospects of a
trade deal between the United States and China.
U.S. President Donald Trump said on Tuesday an agreement
between the two may have to be delayed until after the American
presidential election in November 2020.