On Tuesday, oil prices increased for the fourth straight session amid three consecutive months of production decline in the US.
The US West Texas Intermediate (WTI) futures for November delivery rose by 0.70% to $91.22 per barrel. While Brent crude futures climbed by 0.52% to $94.92 in the Asian morning session.
WTI and Brent have climbed for three weeks straight and are now trading around their ten-month highs. The global benchmark rose for seven consecutive sessions, while the US benchmark oversold for the fifth session.
The Energy Information Administration (EIA) anticipates a drop in US oil production from major shale-making regions. The EIA perceives a decline to 9.39 million barrels per day (bpd) for the third month in October, the lowest since May 2023.
Reports shows that crude exporters Saudi Arabia and Russia extended their non-mandatory supply cuts by 1.3 million bpd until year-end.
Analysts predicted that oil prices may climb $100 per barrel should the rally continue. However, some experts spot next year’s session might result in a slump.
Furthermore, analysts expect crude prices to fall to an average of $84 per barrel in the fourth quarter of 2023. While some experts foresee that it will decline to $70 per barrel in 2024.
EIA Forecasts Oil Output Fall
The EIA expects production from major shale manufacturing regions to slide to its lowest since May 2023.
On Monday, the EIA forecast a 40,000 bpd drop in US oil output, marking the largest monthly decline since December 2022.
Crude production in the Permian Basin in Texas and New Mexico is expected to dip by almost 26,000 bpd to 5.77 million bpd, its lowest since April.
Meanwhile, other experts see crude oil potentially ending its bullish run when the production boost or liquidations are fewer than short coverings.
In their September report, the American Petroleum Institute (API) stated that crude supplies dipped 1.17 million barrels. Ending less than expectations of 2.00-million-barrel drop and August’s record 5.52 million decline.
