Oil Market: WTI Oil Closes 85 Cents on Expectations of Falling Crude Stocks
InfoQuest – New York’s West Texas Intermediate (WTI) crude futures closed higher on Wednesday (Sept. 6), citing expectations that U.S. crude stockpiles will decline. Including Russian news and Saudi Arabia announced an extension of the oil supply cut until the end of this year.
The WTI crude oil contract is delivered in October. It was up 85 cents, or 1%, at $87.54 a barrel. This is the highest closing level since Nov. 11, 2022.
The Brent crude oil contract (BRENT) is delivered in November. They were up 56 cents, or 0.6%, at $90.60 a barrel. This is the highest closing level since Nov. 16, 2022.
WTI oil futures closed for the ninth consecutive day, the longest close in positive territory since the start of 2019, boosted by expectations that Oil supply in the world market will face tight conditions. After Saudi Arabia announced a voluntary extension of oil production cuts of 1 million barrels per day until the end of this year. While Russia has extended the cut in oil exports to 300,000 barrels per day until the end of the year as well.
The market was also driven by expectations that U.S. crude stockpiles will fall by 5.5 million barrels for the week ending Sept. 1, with the U.S. Energy Information Administration (EIA) releasing official crude stockpiles later today. 10:00 p.m. Thai time
However, the market was under pressure during the day due to concerns about high interest rates. after the US revealed a stronger than expected service sector index This raises concerns that the inflation crisis in the United States will prolong and could lead the Federal Reserve (Fed) to hold interest rates high for a long time.
The Institute for Supply Management (ISM) said its service sector index rose to 54.5 in August, beating analysts’ expectations of 52.5 from July’s 52.7. It rose above the 50 level for the eighth straight month, indicating continued expansion in the US service sector.
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2023-09-07 06:12:40
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