Oil rises as tighter market eyed after OPEC+ cancels meeting | Reuters

Oil rises as tighter market eyed after OPEC+ cancels meeting | Reuters

Oil rose towards $76 a barrel on Wednesday, rebounding from steep losses a day earlier with support coming from a tight market in the short term after OPEC+ talks collapsed this week without a deal to boost supply.

Underlining tightening conditions, U.S. crude inventories are expected to fall this week. The failure of OPEC+ talks on Monday means no output rise has been agreed, while U.S. oil shale firms are hesitating to pump more. read more

"The OPEC+ deadlock continues, putting the market in a position of risking a sizeable undersupply in August," said Louise Dickson of Rystad Energy. "U.S. shale producers also seem to be reluctant to invest."

Brent crude was up $1.20, or 1.6%, at $75.73 a barrel by 1127 GMT, after slumping more than 3% on Tuesday. U.S. West Texas Intermediate gained $1.22, or 1.7%, to $74.59, having declined by more than 2% on Tuesday.