Noha Makram – Live – Oil prices rebounded on Thursday, as expectations of further cuts in crude oil production for the rest of 2023 outweighed fears of weak global growth and rising US inventories.
The International Energy Agency said yesterday, Wednesday, that the Kingdom of Saudi Arabia and Russia’s continued reduction in their production will result in a deficit in the fourth quarter, before the US oil inventory report pushes prices to decline slightly.
Tamas Varga, at BVM, said that the report indicating a rise in US oil inventories only resulted in a brief wave of selling, which confirmed the market mentality, explaining that tightening oil balances will remain the main driver of prices for the rest of 2023.
Brent crude rose by 66 cents, or 0.7%, to $92.54 per barrel, at 1010 GMT, while West Texas Intermediate crude rose by 62 cents, or 0.7%, to $89.14.
Priyanma Sakdeva, chief market analyst at Philip Nova, said supply concerns are boosting oil prices as producers are firmly committed to cutting production.
Reuters noted that one day before the International Energy Agency’s report, the Organization of the Petroleum Exporting Countries (OPEC) issued updated forecasts regarding the strength of demand, and also hinted at a supply deficit this year if production cuts were maintained.
ANZ Research analysts said that the oil market appears very tight during the next two or three quarters, with supply restrictions continuing amid strong demand.
Attention is turning to the European Central Bank meeting, today, Thursday, regarding the interest rate decision.
Analysts and investors were inclined for the European Central Bank to stabilize interest rates until a Reuters report reported that the central bank would raise its inflation expectations next year to more than 3%, which weighed in favor of raising interest rates.
2023-09-14 11:17:43
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