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  • Algeria’s oil minister said OPEC+ meeting will be “fruitful”.
  • Russia is reportedly ready to lower its production by 1.6 million bpd.
  • EIA reports crude oil inventories in US increased by 15.2 million barrels.

Crude oil prices rose sharply in the last hour as investors continue to react to developments surrounding the OPEC+ output cut deal. After spiking to $26.37, however, the barrel of West Texas Intermediate quickly erased a large portion of its gains into the daily settlement and was last seen trading at $25.5, adding 5.6% on the day.

Will there be a OPEC+ output cut?

According to the Algerian state news agency APS, “the meeting will undoubtedly be fruitful in order to rebalance the market through measures we will take tomorrow,” Energy Minister Mohamed Arkab said on Wednesday. Some news outlets are also reporting that Arkab also hinted that production cuts could reach 10 million barrels per day (bpd).

Meanwhile, Russia is reportedly ready to reduce its oil production by 1.6 million bpd in line with its share in oil production of countries involved in the deal.

Earlier in the day, the Energy Information Administration’s (EIA) Weekly Petroleum Status Report revealed crude oil stocks in the US increased by 15.2 million barrels to print the largest weekly increase on record. Additional details of the publication showed that products supplied, a measure of oil demand in the US, declined by 3.4 million bpd.

On Thursday, investors will remain focused on the headlines coming out of the emergency OPEC+ meeting.