Oil prices rose on Wednesday as supplies from Russia and OPEC members tightened while data showing an unexpected rise in U.S. job openings pointed to expanding economic activity and growing demand for oil as a result.

Brent crude rose 37 cents, or 0.5%, to $77.42 a barrel by 0730 GMT. U.S. West Texas Intermediate crude rose 44 cents, or 0.6%, to $74.69.

Oil output from the Organization of the Petroleum Exporting Countries fell in December after two months of increases, a Reuters survey showed. Field maintenance in the United Arab Emirates offset a rise in Nigerian output and increases elsewhere in the group.

In Russia, oil output averaged 8.971 million barrels per day in December, below the country's target, Bloomberg reported, citing the energy ministry.

On the economic front, job openings rose in the United States in November and layoffs were low, while workers were reluctant to quit, the Job Openings and Labor Turnover Survey showed.

"Strong U.S. economic data continues to support the outlook for the U.S. economy and oil demand, further supported by a larger-than-anticipated draw in crude inventories," said IG market strategist Yeap Jun Rong.

"After trading in a tight range for a prolonged period since October last year, the selling pressure may have been exhausted for now, paving the way for a moderate recovery," Yeap said.

U.S. crude stockpiles fell last week while fuel inventories rose, market sources said, citing figures from the American Petroleum Institute on Tuesday.

Looking ahead, analysts expect oil prices to average lower this year starting in 2024 partly due to increased production from non-OPEC countries.

Source: Investing.com