Oil futures climbed Wednesday after OPEC members appeared to find common ground Wednesday on efforts to limit production, lifting prices off lows seen after US inventory data showed a surprise build in gasoline stocks.

NYMEX November crude settled $2.38 higher at $47.05/b. ICE November Brent settled up $2.72 at $48.69/b.

NYMEX October ULSD settled 8.11 cents higher at $1.4910/gal. NYMEX October RBOB settled up 8.4 cents at $1.4777/gal.

OPEC members seemed to agree on a deal that would limit output to between 32.5 million b/d and 33 million b/d, Iran oil minister Bijan Zanganeh said Wednesday after exiting talks.

Full ratification of the deal will likely come at OPEC's next formal meeting November 30 in Vienna.

OPEC members pumped 33.13 million b/d in August, according to the latest S&P Global Platts survey. Using secondary sources, OPEC reported its output that month at 33.24 million b/d.

Media reports that OPEC members might have reached a deal seemed to catch the market by surprise after expectations were lowered earlier this week by Iran's insistence on raising its production.

Early Wednesday, Iran appeared open to compromise after Zanganeh said his country would seek an exemption until its production was close to 4 million b/d, rather than his previously stated requirement of 4.2 million b/d.

"I don't believe for a second that there will be much of a production cut," said Kyle Cooper, principal at ION Energy.

"There may be some planned maintenance that gives the impression of a production cut. But that's not what matters right now. If you're short in this market, then it hurts a lot right now," he said.

Oil futures surged Wednesday on rumors that a deal had been reached, helping prices recover from the release of Energy Information Administration data.

Total US gasoline stocks rose by 2.027 million barrels to 227.183 million barrels in the week that ended September 23, EIA said.

Analysts surveyed Monday were looking for gasoline inventories to be unchanged last week, but expectations shifted Tuesday after the American Petroleum Institute said gasoline stocks had fallen by 3.7 million barrels.

Crude stocks declined 1.882 million barrels to 502.716 million barrels, marking the fourth straight decline. Analysts were looking for a build of 3.2 million barrels last week.

"Crude inventories continue tightening as imports remain low, but refinery runs have not yet hit seasonal low for maintenance," Citi Research analysts said in a note.

Total US distillate stocks fell by 1.915 million barrels to 163.077 million barrels with the heating oil season fast approaching.

Analysts were looking for distillate stocks to have drawn by 700,000 barrels.

--Geoffrey Craig, geoffrey.craig@spglobal.com
--Edited by Richard Rubin, richard.rubin@spglobal.com

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