Oil Powers to 10% Monthly Advance as Stockpiles Spiral Lower

World oil inventories will decline by an average of 1.1 million barrels a day this quarter, according to a person familiar with preliminary figures evaluated by a technical committee for the Organization of Petroleum Exporting Countries and its allies. The producer group, which has been resisting pressure from oil users to raise supply at a faster clip, meets next week to assess production policy.

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Oil has been one of the standout performers among commodities of late as a gas-centered energy crunch has buoyed demand for petroleum products. Thus far, OPEC+ has argued that cautious monthly supply increases of 400,000 barrels a day are appropriate as risks remain. But diplomatic pressure is growing, after a top U.S. official called on oil and gas producers to boost output if they can, to help ease tightness.

“OPEC+ is intent on continuing to act as a key pillar of price support for the oil market,” said Stephen Brennock, an analyst at brokerage PVM Oil Associates. Supply will therefore continue to play catch-up with demand in the immediate term.”

Among closely tracked market gauges, WTI time-spreads remain strongly backwardated, a bullish pattern where nearby prices command a premium to those further out. There’s a gap of almost $11 a barrel between the contract for the coming December and the price for same month next year. That’s up from $6.77 a barrel on the first day of October.

Oil’s surge has been a boon for producers including Chevron Corp. and Exxon Mobil Corp. Both supermajors are due to report earnings later Friday.