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Oil prices reach highest levels in years despite economic concerns and rising inventories

© Reuters. Two pumps working in an oil field in Texas in a photo from Reuters archives.

From Somasekhar’s legacy

HOUSTON (Reuters) – Oil prices rose to their highest levels since the beginning of the year on Thursday, as expectations of tight supplies outweighed concerns about weak economic growth and rising crude inventories in the United States.

Brent crude rose 1.74, or 1.88 percent, to $93.62 by 1524 GMT. During the session, it reached $93.68, its highest level since November 2022.

US West Texas Intermediate crude also increased $1.57, or 1.8 percent, to $89.09. It also reached a ten-month high of $90.26.

The International Energy Agency said on Wednesday that Russia’s extension of oil production cuts until the end of 2023 will mean that the market will witness a significant shortage during the fourth quarter. Prices fell slightly after inventory data in the United States before rising again.

The Organization of the Petroleum Exporting Countries (OPEC) also stuck to its forecast for strong growth in global oil demand in 2023 and 2024.

Crude inventories in the United States rose by four million barrels last week, missing analysts’ expectations in a Reuters poll of a decline of 1.9 million. Fuel stocks also rose more than expected as refineries boosted their production.

(Prepared by Ali Khafaji and Marwa Gharib for the Arab Bulletin – Edited by Ayman Saad Muslim)

2023-09-14 16:48:00
#Oil #highest #level #expectations #supply #shortages #Reuters

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