On Wednesday, crude oil kept its almost 10-month high-rise due to the lower outputs are supportive of prices.
West Texas Intermediate (WTI) oil futures for October exports gained by 0.25% to $89.06 per barrel. While Brent for November delivery climbed by 0.17% to $92.22 per barrel.
Given the tight production, oil spot price soared on Tuesday’s trading session, obtaining its highest since 2023 started. Brent increased by 0.21% to $92.25 per barrel, while WTI rose 0.02% to $88.86 per barrel in September 13’s afternoon session.
Since November last year, both benchmarks skyrocketed almost 2.00% on Tuesday to hold their top tier increase.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) expected the supply cuts due to different circumstances. Libya forced to close four crude export manufacturers due to storm surge, while Kazakhstan will cut supply caused by maintenance.
According to analysts, these circumstances paved the way for oil to price spike. Also, after the tighter-than-expected OPEC’s monthly report, the crude price started to rally.
While OPEC expects that by 2023 and 2024 the crude demand will grow abundantly.
On a lighter note, Saudi Arabia and Russia will extend their nonobligatory oil contribution until the end of the year. Reports show that the supply cuts combined 1.3 million barrels per day.
US Crude Oil Stockpile Increased after Five Weeks
The United States oil reservoir increased after its five-consecutive weeks down.
According to American Petroleum Institute (API), US crude increased by 1.2 million barrels (mb) last week. Due to the end of summer driving period in the US, both oil and fuel pile gained.
While gasoline produced 4.21 million barrels and distillate surged 2.59 million barrels.
Given the increase, the US stock is still down by 1.17 million barrels from the previous 5.52 million decline report.
Meanwhile, analysts estimated that crude stockpile will drop by -2.30 million barrels citing the -5.52 million barrels last August record. However, on the actual Energy Information Administration (EIA) report, the oil inventory only dipped by -1.17 million barrels.
