Prices of Crude Oil Rise on Supply Constraints
Prices of crude oil continue to rise on account of supply constraints in the global market. Brent crude futures rose toward $95 per barrel on Tuesday, hovering at the highest levels in over ten months amid expectations of a widening market deficit in the fourth quarter due to dwindling supply.
The US Energy Information Administration said on Monday that US oil output from top shale-producing regions is on track to decline for the third straight month to 9.393 million barrels per day in October, the lowest since May.
Meanwhile, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman defended OPEC+ moves to curtail oil supply on Monday, saying markets were being guided to limit volatility and warning about global economic and demand uncertainties.
Earlier this month, Saudi Arabia and Russia announced that they would extend a combined 1.3 million bpd of supply cuts to the end of the year.
Front-month WTI crude oil futures above $91 per barrel on Tuesday, hitting it hovering at the highest levels in over ten months amid expectations of a widening market deficit in the fourth quarter due to dwindling supply.
The US Energy Information Administration said on Monday that US oil output from top shale-producing regions is on track to decline for the third straight month to 9.393 barrels per day in October, the lowest since May.
Earlier this month, Saudi Arabia and Russia announced that they would extend a combined 1.3 million bpd of supply cuts to the end of the year.
The oil market has continued to rally amid ongoing supply constraints. Exports from Russia declined almost a third to 63,000 tons/day in the first two weeks of September amid seasonal refinery maintenance, ANZ analysts said in a research note.
They also note that Saudi Arabia’s Energy Minister said Monday at the World Petroleum Congress that OPEC is working to keep oil markets stable and improve global security, although he didn’t mention any specific price level for crude. #Prices of Crude Oil Rise on Supply Constraints Oil Rally Amidst Demand Optimism as UK Unlocks