Crude oil prices continue to climb as a result of global supply restrictions. Brent oil futures surged above $95 per barrel on Tuesday, hovering at the highest levels in almost 10 months as the market anticipates a growing supply imbalance in the fourth quarter.
According to the US Energy Information Administration, US oil output from major shale-producing regions is on course to fall for the third consecutive month in October, to 9.393 million barrels per day, the lowest level since May.
Meanwhile, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman defended OPEC+ production cuts on Monday, saying markets were being directed to reduce volatility while also warning about global economic and demand risks.,
Saudi Arabia and Russia said earlier this month that they will prolong supply restrictions of 1.3 million bpd through the end of the year.
Front-month WTI crude oil futures rose above $91 a barrel on Tuesday, reaching the highest level in more than 10 months on expectations of a growing market deficit in the fourth quarter due to diminishing supplies.
According to the US Energy Information Administration, US oil output from major shale-producing regions is on track to fall for the third consecutive month in October, to 9.393 barrels per day, the lowest level since May.
Earlier this month, Saudi Arabia and Russia stated that they will prolong supply restrictions of 1.3 million bpd through 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.
