The prices of the Petroleum they went up this wednesday for seventh consecutive day and touched a new maximum of 2023, reversing the initial falls, since the operators expected further drawdowns in US crude inventories after the extension in the production cuts of Saudi Arabia and Russia.
Brent crude futures advanced 56 cents to $90.60 a barrel, while US crude futures West Texas Intermediate (WTI) added 85 cents to $87.54. Both benchmarks climbed $1 and then pared gains.
“We have pretty low oil supplies in the US, with several weeks of large crude drawdowns driving prices higher,” said Bob Yawger, director of energy futures at Mizuho.
Six analysts polled by Reuters estimated on average that US crude inventories fell by about 2.1 million barrels in the week to September 1. The survey was conducted ahead of reports from the American Petroleum Institute and the US Energy Information Administration on Thursday.
Both data sets arrive one day later than usual due to the Monday Labor Day holiday.
Oil: Saudi Arabia and Russia extended supply cuts
On Tuesday, Saudi Arabia and Russia extended voluntary oil supply cuts until the end of the year. Saudi cuts were 1 million barrels per day (bpd), while Russia cut exports by 300,000 bpd. These measures are in addition to what was agreed in April by various OPEC+ producers until the end of 2024.
Both countries will review market conditions and make monthly decisions on deepening cuts or increasing production.
Reflecting near-term supply concerns, immediate-month Brent futures traded near nine-month highs., at $4.13 a barrel, above prices for six months. The equivalent spread for US WTI futures hit $4.88 a barrel, also near a nine-month high.
Oil prices fell earlier on rate hike fears and investor concerns about the economy, after the ISM Non-Manufacturing Purchasing Managers’ Index (PMI) came in at 54.5, versus expectations for 52.5 points.
Source: Ambito
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