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Oil prices were moving higher on Wednesday as the oil market faces tight supplies in the second half amid uncertainty about OPEC+ production policy.

Benchmark Brent crude futures jumped 1.7 percent to $75.77 a barrel, after plunging over 3 percent in the previous session. U.S. West Texas Intermediate crude futures were up 1.8 percent at $74.67.

Without any additional hike in output as earlier assumed, the supply uncertainty is driving oil prices higher.

Oil producers abandoned talks on Monday after three days of negotiations failed to close divisions between Saudi Arabia and the United Arab Emirates over output hike.

The United Arab Emirates agreed to go along with output increases but rejected a separate proposal to extend curbs to end-2022.

If a quick resolution is not found, there will be increased uncertainty in the months ahead, analysts said.

The American Petroleum Institute will release its weekly estimates of crude inventories after the closing bell later today. Analysts expect stocks to fall by 3.9 million barrels.

The weekly oil report from the U.S. Energy Information Administration (EIA) will be released on Thursday.


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