Oil rises amid expectations of tight supply

Economy

14-09-2023, 09:46

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INA- sources

Oil prices rose today, Thursday, after falling slightly in the previous session, as markets returned to focus on expectations of a scarcity of crude supply during the rest of 2023.

Brent crude futures rose 17 cents to $92.05 a barrel at 12:02 GMT, while US West Texas Intermediate crude rose 19 cents to $88.71.

The International Energy Agency said yesterday, Wednesday, that extending the oil production cut until the end of 2023 will mean that the market will witness a significant shortage during the fourth quarter, while it largely stuck to estimates of demand growth this year and next.

The Organization of the Petroleum Exporting Countries (OPEC) also stuck to its forecast for strong growth in global oil demand in 2023 and 2024.

Both benchmarks jumped to their highest levels in 10 months yesterday, Wednesday, before data showed a sudden increase in crude and fuel inventories in the United States, which raised market concerns about demand.

source: Pledge Times