Oil prices rose for a fourth straight session on Tuesday as weak U.S. shale production further stoked concerns about supply shortages caused by prolonged production cuts by Saudi Arabia and Russia.
Brent crude futures, the global oil benchmark, rose 41 cents, or 0.43%, to $94.84 a barrel by 0751 GMT. U.S. West Texas Intermediate crude futures rose 92 cents, or 1.01%, to $92.40 after breaking through a $1 gain.
Prices have risen for a third straight week, with both benchmarks near 10-month highs.
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The U.S. Energy Information Administration (EIA) said on Monday that oil production in major U.S. shale oil-producing regions is expected to fall to 9.393 million barrels per day in October, the lowest level since May 2023. It would fall for three months in a row.
The forecasts come after Saudi Arabia and Russia this month extended combined production cuts of 1.3 million barrels per day until the end of the year.
Kelvin Wong, senior market analyst at OANDA in Singapore, said concerns about tight supply and technical factors supported prices.
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“WTI crude oil futures have seen a sustained short-term uptrend, with the previous decline having been contained by its 5-day moving average since August 29…(now) a key short-term uptrend.” Support is around $89.90 per barrel,” Wong noted.
“Oil moved into overbought territory, leaving the market vulnerable to a correction,” analysts at National Australia Bank wrote in a client note, noting that the move followed comments from Saudi Aramco CEO Amin Nasser and Saudi Arabia’s energy minister on Monday. , the market fluctuates.
The Saudi Aramco CEO downgraded the company’s long-term demand outlook, now predicting global demand will reach 110 million barrels per day by 2030, down from a previous estimate of 125 million barrels per day.
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Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman on Monday defended OPEC+ oil supply cuts, saying international energy markets needed looser regulations to limit volatility, while warning about Chinese demand, European growth and central bank action to combat inflation. of uncertainty.
Central banks in the US, UK, Japan, Sweden, Switzerland and Norway are due to make interest rate decisions this week.
PVM Energy’s Tamas Varga said this “does little to calm nerves as the conflict between significantly reduced supplies and a less reassuring economic outlook continues.”
