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Oil prices rise by about 1% after OPEC+ reduces production.

Investors brushed aside oversupply concerns on Wednesday, after digesting OPEC+'s decision to limit production next month.

Brent crude futures were up 63 cents or 0.96% to $66.08 per barrel at 0715 GMT. U.S. West Texas Intermediate Crude climbed 66 Cents, or 1.07 %, to $62.39.

The benchmarks settled broadly flat in the previous session as investors weighed signs of a supply glut against a smaller-than-expected increase to November output from the Organization of the Petroleum Exporting Countries and affiliates.

The market is stuck in a price limbo. One side believes there will be a glut of supply, while the other believes the ramp-up won't happen as quickly as expected," said Emril jamil, a senior researcher at LSEG Oil Research.

Jamil said that traders have been betting on the price of crude oil to rise and are currently holding long positions or bets. This is due to continued efforts by Russia's government to reduce its crude exports.

OPEC+ chose to increase production by 137,000 barrels a week, the lowest of the options discussed over the weekend.

Investors are likely to discount production increases until the physical market softens via increasing inventories. This was the conclusion of ANZ analysts on Wednesday.

The analysts at ANZ said that the price gains were capped by the easing of fears about Russian supply disruption. Crude oil shipments have been close to a 16 month high in the last four weeks.

Investors will also be waiting for the Energy Information Administration to release U.S. inventories later on Wednesday.

Sources citing American Petroleum Institute data said that U.S. crude stock rose by 2,78 million barrels during the week ending October 3.

The API data showed that gasoline and distillate stocks fell.

The EIA reported on Tuesday that the U.S. is expected to surpass its previous expectations in terms of oil production this year. (Reporting and editing by Christopher Cushing; Christian Schmollinger, Joe Bavier and Jeslyn Lerh)

(source: Reuters)