Oil rises despite oversupply fears

Oil drilling rigs

Oil prices rose during early trade today, Dec. 12, despite continued concerns about oversupply following the insufficient time for the voluntary production cuts by OPEC+.

Prices are also affected by the upcoming inflation data in the United States, to be released later today.

International benchmark Brent crude was trading up 0.70% at $76.56 a barrel, at 09:03 am Makkah time. West Texas Intermediate (WTI) crude rose 0.76% to $71.86 a barrel.

ANZ analysts said in a note issued today that the increase in shale oil production in the US continues to surprise the market, in addition to the fact that the increase in production of other countries outside the OPEC was unexpectedly large.

Investors will get more information about the fundamental factors of the market after OPEC and the International Energy Agency issued their monthly reports on the oil market this week, the note said.

Yeap Jun Rong, Market Strategist at IG, explained in another note that traders’ focus will be on the consumer price inflation data in the US, in order to obtain more information about the steps that monetary policy makers may take during the next meeting of the Federal Reserve Board, Reuters reported.