Oil jumps 3% on U.S. stockpiles drop; further OPEC output cuts seen - Reuters

Oil jumps 3% on U.S. stockpiles drop; further OPEC output cuts seen - Reuters:

Oil prices surged more than 3% on Wednesday on expectations that OPEC and allied producers would extend production curbs, and as U.S. government data showed a large drop in domestic crude stockpiles.

Brent crude LCOc1 futures ended the session up $2.18, or 3.6%, at $63 a barrel after climbing to as much as $63.51. U.S. West Texas Intermediate (WTI) crude CLc1 futures settled up $2.33, or 4.2%, at $58.43 after touching a session high of $58.66 a barrel.

The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, could approve deeper crude output cuts when they meet in Vienna this week.

U.S. crude stocks fell by 4.9 million barrels in the week to Nov. 29 as refineries hiked output, the Energy Information Administration said, a much deeper draw than expected. Analysts had forecast a decrease of 1.7 million barrels.