Oil rose on Wednesday, building on gains in recent days as OPEC+ agreed its deepest cuts to production since the 2020 COVID pandemic, despite a tight market and opposition to cuts from the United States and others.
Brent crude was up 28 cents, or 0.3%, at $92.08 a barrel at 1351 GMT, while U.S. West Texas Intermediate (WTI) crude rose 7 cents, or 0.1%, to $86.59 a barrel. Both contracts rose sharply in the last two days.
The cut could spur a recovery in oil prices that have dropped to about $90 from $120 three months ago on fears of a global economic recession, rising U.S. interest rates and a stronger dollar.
Oil had been rising this week in anticipation of the cuts, said Fiona Cincotta, senior financial markets analyst at City Index.
"The real impact of a large cut would be smaller, given that some of the members are failing to reach their output quotas," Cincotta added.
In August, OPEC+ missed its production target by 3.58 million bpd as several countries were already pumping well below their existing quotas.
"We believe new output targets will mostly be shouldered by core Middle East countries, led by Saudi Arabia, the UAE and Kuwait," said Rystad Energy's analyst Jorge Leon.
The United States was pressing OPEC+ producers to avoid making deep cuts, a source familiar with the matter told Reuters, as President Joe Biden looks to prevent a rise in U.S. gasoline prices ahead of midterm congressional elections on Nov. 8.
Biden has been grappling with gasoline prices all year and after a spike, they have eased, something his administration has touted as a major accomplishment.
Wednesday's agreement by OPEC+ in Vienna would "send a strong message that the group is determined to support the market," ANZ Research analysts said in a note, adding that it "would significantly tighten the market."
U.S. crude oil stocks fell by about 1.8 million barrels for the week ended Sept. 30, according to market sources citing American Petroleum Institute figures on Tuesday.
A rise in the U.S. dollar has also put pressure on crude prices as it makes oil more expensive for buyers holding other currencies.