Oil prices extend gains with US crude climbing above $90 for first time in 2023

Economies.com
1 week ago

Oil prices rose in American trade on Thursday, extending gains for the fifth straight session and scaling a ten-month high, with US crude trading above $90 a barrel for the first time since November 2022. 

 

The gains came amid expectations of severe market shortages in the final quarter of the year as both Saudi Arabia and Russia extend their voluntary production cuts for three more months.

 

Such cuts overshadowed concerns about over supply in the US as commercial crude stocks surged last week alongside crude production.

 

Global Oil Prices

 

US crude rose 1.4% to $90.03 a barrel, the highest since November 2022, while Brent added 1.6% to $93.42 a barrel, the highest  since November 2022 as well.

 

US crude rose 0.1% yesterday, while Brent added 0.3%, the fourth profit in a row on expectations of extreme market shortages this year. 

 

Shortages 

 

Advertistment

The International Energy Agency said the decision by Saudi Arabia and Russia to cut crude output by 1.3 million bpd until the end of the year will cause shortages in the fourth quarter of the year.

 

Bank of America analysts believe such cuts will send Brent prices above $100 by the end of the year.

 

Conversely, OPEC maintained its optimistic outlook for demand growth worldwide this year and next year,while also expecting flexible global economic growth despite higher interest rates.

 

OPEC specifically expects global demand on crude to rise by 2.25 million bpd in 2024, and to rise by 2.44 million bpd this year.

 

US Stocks

 

The Energy Information Administration reported a buildup of 4 million barrels in US crude stocks last week, while analysts expected a 2.2 million barrels drop. 

 

US production also surged by 100 thousand bpd to a total of 12.9 million bpd, the highest since March 2020.

Commodities News

Oil News

Commodities

Is that the real reason behind Saudi Arabia's crude production cuts?
11 hours ago
Saudi energy minister Abdulaziz bin Salman Al Saud said this week about the recent Saudi and ...
Palladium News

Commodities

Palladium declines as dollar muscles up amid global inflation concerns
12 hours ago
Palladium prices fell on Friday as the dollar gained ground against most major rivals and amid ...
Oil News

Commodities

Oil prices climb for second straight day
15 hours ago
Oil prices rose in European trade on Friday for the second session on track for ten-month highs ...

Commodities Technical Analysis

Brent oil Analysis

Commodities

Midday update for Brent oil 22-09-2023
18 hours ago
Brent oil price resumes its positive trading to approach our first waited target at 94.80, waiting ...
Oil Analysis

Commodities

Midday update for Crude oil 22-09-2023
18 hours ago
Crude oil price shows new positive trades to move above 91.00 barrier now, reinforcing the ...
Silver Analysis

Commodities

Midday update for Silver 22-09-2023
18 hours ago
Silver price managed to achieve our waited target at 23.70 and attempts to breach it, to support ...