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Oil prices gain near 2% on expectations of deeper OPEC+ cuts

FILE PHOTO: Crude oil production in Kazakhstan

By Shariq Khan

BENGALURU (Reuters) - Oil prices rose more than $1 a barrel on Wednesday as investors focused their attention on expectations of fresh supply cuts from OPEC+ and looked past a jump in U.S. crude, gasoline and distillate stockpiles.

Brent crude futures advanced by $1.42, or 1.7%, to settle at $83.10 a barrel, while U.S. West Texas Intermediate (WTI) crude futures gained $1.45, or 1.9%, to settle at $77.86 a barrel.

Oil markets have found support from hopes of some form of a price-supportive resolution from the OPEC+ group, Kpler analyst Matt Smith said.

Members of OPEC+, which includes the Organization of Petroleum Exporting Countries and its allies such as Russia, are due to hold a policy meeting on Thursday. Talks ahead of the meeting were focusing on additional cuts, although details were yet to be agreed, sources close to the group told Reuters.

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Another media report earlier said that the cut could be of as much as 1 million barrels a day.

"All eyes are on the Nov. 30 OPEC meeting, and the fine details will matter," CFRA analyst Stewart Glickman said.

The Energy Information Administration reported a surprise build in U.S. crude oil and distillate fuel stocks last week, indicating weak demand. Gasoline stocks also rose by more than expected, the data showed. [EIA/S]

However, the impact of those builds was neutralised by large draws in other refined products, like residual fuel oil, UBS analyst Giovanni Staunovo said.

A severe storm in the Black Sea region has disrupted up to 2 million bpd of oil exports from Kazakhstan and Russia, according to state officials and port agent data, raising the prospect of short-term supply tightness.

Kazakhstan's largest oilfields are cutting combined daily oil output by 56% from Nov. 27, the Kazakh energy ministry said.

(Reporting by Shariq Khan; Additional reporting by Ahmad Ghaddar, Yuka Obayashi and Muyu Xu; Editing by Marguerita Choy, Kirsten Donovan and Daniel Wallis)