Declining oil inventories in the U.S. and uncertainty about supplies from Russia support oil

Oil prices surged as trading opened on Wednesday. The rise took place amid the release of industry data, showing more crude stockpile cuts than expected. Last week, experts have already mentioned the issue of limiting oil supplies. Thus, the EU ban on Russian crude imports will come into force in December. Setting a price threshold is likely to play a significant role too. 

Saudi Arabia’s Minister of Energy stated that the country has no plans to increase oil production in the near future. The United Arab Emirates, Kuwait, Iraq and Algeria supported this decision. The next meeting of the exporting countries is scheduled for December 4. OPEC+ members are going to consider the problem of expanding oil production quotas. 

Analysts said there is some uncertainty about Russia's reaction to the G7 setting a price threshold for crude oil. But it could provide support to the market. 

Traders will be watching Russian exports closely, as Stephen Innes, managing partner at SPI Asset Management, noted. Oil shipments abroad are expected to decline, potentially driving prices up. 

U.S. crude oil inventories have fallen by 4.8 million barrels in the past week. This led to higher oil prices on Wednesday, the American Petroleum Institute reported. 

Analysts polled by Reuters predicted oil supplies would fall by 1.1 million barrels.