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Oil costs firm as geopolitical stress raise supply issues

Oil costs edged higher on Thursday due to supply concerns activated by intensifying geopolitical tensions amid the continuous war in between Russia and Ukraine.

Brent crude futures for January rose 28 cents, or 0.4%, to $73.09. U.S. West Texas Intermediate crude futures for January rose 28 cents, or 0.4%, at $69.03.

Ukraine fired a volley of British Storm Shadow cruise rockets into Russia on Wednesday, the latest brand-new Western weapon it has been allowed to utilize on Russian targets a day after it fired U.S. ATACMS missiles.

Moscow has said making use of Western weapons to strike Russian territory far from the border would be a significant escalation in the conflict. Kyiv states it needs the capability to defend itself by hitting Russian rear bases used to support Moscow's invasion, which entered its 1,000 th day today.

On the other hand, U.S. crude stocks rose by 545,000 barrels to 430.3 million barrels in the week ended Nov. 15, the Energy Info Administration stated, compared with analysts' expectations in a Reuters survey for a 138,000-barrel increase.

Gas inventories last week rose more than forecast, while extract stockpiles published a larger-than-expected draw.

Contributing to supply, Norway's Equinor said it had restored full output capacity at the Johan Sverdrup oilfield in the North Sea following a power failure.

Meanwhile, the Company of the Petroleum Exporting Countries and its allies led by Russia, the group called OPEC+, may press back output increases once again when it satisfies on Dec. 1 due to weak international oil need, according to three OPEC+. sources knowledgeable about the conversations.

OPEC+, which pumps around half the world's oil, had. initially planned to gradually reverse production cuts with. minor increases spread over numerous months in 2024 and 2025.

However, a downturn in Chinese and worldwide demand, combined. with increasing output outside the group, have potentially warded off. this strategy.

(source: Reuters)