Oil prices rose by more than one percent, on Tuesday, to reach the highest level in 10 months, after weak shale oil production in the United States raised more concerns about the scarcity of supply, caused by extended production cuts from Saudi Arabia and Russia.
Prices remain on their way to rise for the fourth week in a row.
“The market is starting to realize that there are concerns everywhere about supply shortages, whether it is crude oil, diesel or gasoline… We are facing a fait accompli,” said Phil Flynn, an analyst at Price Futures Group.
The US Energy Information Administration said on Monday that US oil production, one of the largest shale oil producing regions, is heading to decline to approximately 9.4 million barrels per day in October, which is the lowest level since May 2023.
This will be the third monthly decline in a row.
These estimates come after Saudi Arabia and Russia this month extended their combined production cuts of 1.3 million barrels per day until the end of the year.
Saudi Energy Minister Prince Abdulaziz bin Salman said that international energy markets need regulation to reduce volatility, while also warning of uncertainty about Chinese demand, growth in Europe, and central banks’ actions to confront inflation.
Oil movements
By 15:51 GMT, Brent crude futures rose 80 cents, or 0.84 percent, to $95.22 per barrel.
It reached $95.96 a barrel during the session, the highest level since November.
US West Texas Intermediate crude futures also rose 92 cents, equivalent to 1.04 percent, to $91.51 per barrel.
It had reached $93.74 a barrel earlier in the session, also the highest level since November.
2023-09-19 15:57:44
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