By Jeslyn Lerh
SINGAPORE (Reuters) – Oil prices rose on Wednesday as supplies from Russia and OPEC members tightened while data showing an unexpected rise in U.S. job openings pointed to expanding economic activity and subsequent growth in oil demand.
Brent crude was up 37 cents, or 0.5%, at $77.42 a barrel at 0730 GMT. US West Texas Intermediate crude climbed 44 cents, or 0.6%, to $74.69.
Oil output from the Organization of the Petroleum Exporting Countries fell in December after two months of increases, a Reuters survey showed. Field maintenance in the United Arab Emirates offset increases in Nigerian output and gains elsewhere in the group.
In Russia, oil output averaged 8.971 million barrels per day in December, below the country's target, Bloomberg reported citing the energy ministry.
As for the economy, job openings in the United States rose in November and the number of layoffs was low, while workers were reluctant to quit, the Job Openings and Labor Turnover Survey showed.
“Strong US economic data continues to bolster the outlook for the US economy and oil demand, further supported by a larger-than-expected drop in crude inventories,” said market strategist IG, Yeap Jun Rong.
“After trading within a long limited range since October last year, selling pressure may have ended for the time being, paving the way for a modest recovery,” Yeap said.
US crude oil stocks fell last week while fuel inventories rose, market sources said, citing figures from the American Petroleum Institute on Tuesday.
Going forward, analysts expect oil prices to average down this year from 2024 in part due to increased production from non-OPEC countries.
“We hold to our forecast for Brent crude to average $76/bbl in 2025, down from an average of $80/bbl in 2024,” BMI, a division of Fitch Group, said in a client note.
“The bearish view is led by our fundamental data forecast, which points to oversupply this year, with supply growth outstripping demand growth by 485,000 barrels per day.”
(Reporting by Katya Golubkova in Tokyo and Jeslyn Lerh in Singapore; Editing by Christopher Cushing, Kirsten Donovan)