Oil prices rise on potential OPEC+ supply cuts; BP shuts U.S. refinery units

Oil prices rose on Thursday on mounting supply tightness concerns amid disruptions to Russian exports, the potential for major producers to cut output, and the partial shutdown of a U.S. refinery, Reuters reported.

Brent crude rose 45 cents, or 0.4%, to $101.67 a barrel by 0630 GMT, while U.S. West Texas Intermediate crude was up 32 cents, or 0.3%, at $95.21 a barrel.

Both crude oil benchmark contracts touched three-week highs on Wednesday.

In the United States, the world’s biggest oil consumer, BP reported shutting some units at its Whiting refinery in Indiana after an electrical fire on Wednesday. The 430,000 barrel-per-day plant is a key supplier of fuels to the central United States and the city of Chicago.

Falling U.S. crude and product stockpiles also added to the upward pressure on prices. Oil inventories fell by 3.3 million barrels in the week to Aug. 19 at 421.7 million barrels, steeper than analysts’ expectations in a Reuters poll for a 933,000-barrel drop.

The bullish impact was countered by a drawdown in gasoline inventories that was less than expected, reflecting tepid demand.

U.S. gasoline stocks fell by 27,000 barrels in the week to 215.6 million barrels, compared with earlier expectations for a 1.5 million-barrel drop.