08:46 AM EST, 12/04/2024 (MT Newswires) -- Oil prices rose for a third day early on Wednesday on expectations OPEC+ will likely again postpone a plan to return 2.2-million barrels of shut-in production to market when the group meets on Thursday, while a report showed U.S. inventories rose last week.

West Texas Intermediate crude oil for January delivery was last seen up US$0.13 to US$70.07 per barrel, while February Brent crude, the global benchmark, was up US$0.20 to US$73.82.

OPEC+ will hold a virtual meeting on Thursday where it is widely expected to delay again plans to return voluntary production cuts to the market through monthly 180,000 barrel per day increments. The group's current plan is to begin the supply additions in January, however reports say they will delay the scheme until the second quarter.

However market conditions in the second quarter are expected to be weak, with major forecasting agencies seeing rising production from the United States, Canada and South America more than sufficient to meet weak demand growth from China and elsewhere, raising global inventories and softening prices.

"Thursday's OPEC+ meeting is likely to yield another delay to planned production increase, amid sluggish demand and fear of oversupply," Saxo Bank noted.

In its weekly survey, the American Petroleum Institute reported U.S. oil inventories rose by 1.23-million barrels last week, while the consensus estimate of analysts surveyed by Oilprice.com expected a 2.06-million barrel draw on stocks. Gasoline inventories were also sharply higher, rising by 4.62-million barrels, signaling weak demand.

The Energy Information Administration will release official inventory data later on Wednesday morning.

Geopolitical risk is offering some support to oil prices, as the ceasefire agreement reached last month between Israel and Lebanon remains amid repeated violations. while Syrian insurgents continue to press government and Russian forces, and the war in Ukraine continues.

As well, a declaration of martial law by South Korea's president on Tuesday, quickly overturned by the opposition-controlled Parliament, introduced unexpected turmoil in the world's 12th-largest economy.