Oil rises over $1 on tighter supply, stays on track for 3rd monthly gain ahead of OPEC decision; Brent hits $87

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Also Read: Oil market oversupplied with record-high US output, Brent seen at $87-$92 for 2024: ShareKhan's Mohammed Imran Both benchmarks were up more than two per cent on the week and were on track to finish higher for a third consecutive month, according to news agency Reuters. Coming to domestic prices, crude oil futures traded 1.76 per cent higher at ₹6,895 per barrel on the multi commodity exchange (MCX). -In the previous session, oil prices had come under pressure from last week's unexpected rise in US crude oil and gasoline inventories, driven by an increase in crude imports and sluggish gasoline demand, according to Energy Information Administration (EIA) data.

-Analysts expect inventories to rise less than normal in reflection of the global oil market in a slight deficit. This will likely hand support to the Brent crude oil prices going forward. US refinery utilisation rates, which rose 0.9 percentage points last week, also supported prices.

-The US economy, meanwhile, grew faster than previously estimated in the fourth quarter. US gross domestic product (GDP) increased at a 3.4 per cent annualized rate from the previously reported 3.2 per cent pace, said the Commerce Department's Bureau of Economic Analysis. -Investors will watch for cues from a meeting next week of the OPEC's Joint Monitoring Ministerial Committee.

Increased geopolitical risk has raised expectations of possible supply disruption, but OPEC is unlikely to make any oil output policy changes until a full ministerial gathering in June. -Analysts do not see any indications that the recent run-up in prices due to the heightened Russian infrastructure risk will prompt any policy reversal at next week's OPEC meeting. Any serious shift will likely have