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Oil costs rise on optimism over strong United States fuel need

Oil prices increased on Thursday, extending the previous day's rally, driven by optimism over U.S. fuel demand following an unforeseen drop in crude and gasoline inventories, while reports that OPEC+ might delay an organized output boost offered assistance.

Brent crude futures gained 35 cents, or 0.5%, to $ 72.90 a barrel by 0029 GMT. U.S. West Texas Intermediate crude futures climbed 32 cents, or 0.5%, to $68.93 per barrel.

Both agreements rose more than 2% on Wednesday, after falling more than 6% earlier in the week on the decreased risk of broader Middle East war.

U.S. gasoline stockpiles fell unexpectedly in the week ending Oct. 25 to a two-year low on strengthened demand, the Energy Info Administration stated, while crude stocks also posted a surprise drawdown as imports slipped.

9 analysts polled had expected a boost in gasoline and crude inventories.

The surprise decrease in U.S. fuel stockpiles offered a. purchasing opportunity as demand appeared more powerful than. expected, said Toshitaka Tazawa, an analyst at Fujitomi. Securities.

Expectations of a possible delay in the OPEC+ production. boost were likewise encouraging ... If they do delay, WTI could. recover to the $70 level, he said.

Reuters reported OPEC+, which groups the Company of the. Petroleum Exporting Countries and allies such as Russia, could. delay a prepared oil production increase in December by a month. or more since of issue over soft oil need and rising. supply.

The group is arranged to raise output by 180,000 barrels. daily (bpd) in December. It had actually currently delayed the increase. from October since of falling prices.

A decision to hold off the increase might come as early as. next week, 2 OPEC+ sources told Reuters.

OPEC+ is set up to satisfy on Dec. 1 to choose its next. policy steps.

In the Middle East, Lebanon's prime minister expressed hope. on Wednesday that a ceasefire deal with Israel would be. announced within days as Israel's public broadcaster published. what it stated was a draft agreement providing for a preliminary. 60-day truce.

The push for a ceasefire for Lebanon is taking place. together with a similar diplomatic drive to end hostilities in Gaza.

(source: Reuters)