Oil prices decrease on Wednesday

Oil prices decreased on Wednesday, in comparison with a nearly 4 percent surge the previous day on receding fears of an imminent output cut by OPEC+ and allies.

Global benchmark Brent crude futures declined 21 cents, or 0.2 percent to $100.01 a barrel by 0114 GMT, after rising 3.9 percent on Tuesday.

The U.S. West Texas Intermediate crude futures contract decreased 10 cents, or 0.1 percent at $93.64 a barrel, having climbed 3.7 percent the previous day.

“Tuesday’s rally was overdone as many investors knew it would take several months for Iranian oil to flow into the international market even if an agreement to revive Tehran’s 2015 nuclear deal was made, meaning OPEC+ would not trim output so quickly,” chief analyst at Fujitomi Securities Kazuhiko Saito said.

“Still, there is not much room for the market’s downside due to robust heating fuel demand for the winter. The recent rally in the U.S. heating oil market and surging natural gas prices boosted expectations for stronger heating oil demand and tighter crude supply.” he pointed.

U.S. gas prices exceeded $10 for the first time in about 14 years as a result of a surge in prices in Europe, where tight supplies persist.