09:06 AM EST, 11/27/2024 (MT Newswires) -- Oil prices rose early on Wednesday after a report showed a large drop in U.S oil inventories last week while OPEC+ will meet over the weekend to consider its plan to begin returning 2.2-million barrels per day of production cuts to the market.

West Texas Intermediate crude oil for January delivery was last seen up US$0.38 to US$69.15 per barrel, while January Brent crude, the global benchmark, was up US$0.32 to US$73.13.

In its weekly survey, the American Petroleum Institute reported U.S. oil inventories fell by 5.94-million barrels last week, while the consensus analyst estimate expected a rise of 0.25-million barrels, according to Investing.com. The Energy Information Administration will release official inventory data later on Wednesday morning.

OPEC+ will stage a ministerial meeting on Sunday to decide if it will go ahead with a plan to begin returning voluntary production cuts to the market with monthly supply additions of 180,000 barrels per day for a year beginning in January or again delay the scheme as demand from China, the No.1 importer remains weak.

"Crude prices remain stuck near key support levels as traders assess the outlook for growth and demand into 2025. Focus is on the EIA's weekly report after the API indicated that crude stocks shrank by 5.9 million barrels, as well as the upcoming OPEC+ meeting and whether the group will once again delay restoring some production," Saxo Bank noted.

Geopolitical risk eased after Israel and Lebanon reached a ceasefire agreement that sees the Iran-backed Hezbollah militia promising to move 40 kilometers from Israel's border with Lebanon. The agreement is expected to end the cross-border missile attacks between Israel and the militia group and Israel's invasion in southern Lebanon.