Oil prices continue to rise on Monday after a steady rise last week.
Traders’ attention is focused on the World Petroleum Congress in Calgary (Canada), where Saudi Energy Minister Prince Abdulaziz bin Salman will be one of the key speakers.
The cost of November futures for Brent on the London ICE Futures exchange by 8:10 a.m. is $94.47 per barrel, which is $0.54 (0.57%) higher than at the close of the previous session. On Friday, the price of these contracts increased by $0.23 (0.3%) to $93.93 per barrel.
October futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) rose by $0.54 (0.57%) to $94.47 per barrel by this time. As a result of the previous trading, the price of these contracts rose by $0.61 (0.7%) to $90.77 per barrel, the highest since November 7.
Last week, the price of Brent increased by 3.6%, and WTI by 3.7%.
Since the beginning of this year, Brent has risen by 10%. Saudi Arabia’s decision to extend its voluntary 1 million bpd oil production cut by the end of 2023 has raised concerns about a supply shortage in the market, while demand prospects appear increasingly favorable as the likelihood of a US recession diminishes.
“Traders’ focus will shift to the Federal Reserve meeting this week, but the problem of oil supply shortages and the growing inventory drawdown is supporting bullish sentiment in the market,” said Vanda Insights founder Vandana Hari.
Benchmark crude oil prices continue to climb on Thursday afternoon amid a weaker US dollar.
November Brent crude futures on the London-based ICE Futures exchange at 14:29 Q2 are trading at $93 per barrel, up $1.12 (1.22%) from the previous session’s close.
WTI crude futures for October delivery rose $1.14 (1.29%) to $89.66 per barrel in electronic trading on the New York Mercantile Exchange (NYMEX).
The expected increase in global oil demand by 1.5 million bpd in the second half of 2023 compared to the first half of the year will outstrip supply by 1.24 million bpd, according to a report published the day before by the International Energy Agency (IEA).
The IEA estimates that the balance of the global oil market turned into a deficit in the third quarter as more supply cuts coincided with record high demand.
Meanwhile, the DXY index, which shows the value of the U.S. dollar against six major world currencies, is down 0.03%, boosting the attractiveness of commodities quoted in the U.S. currency.
Oil prices continue to rise on Tuesday afternoon, with traders waiting for new signals on supply and demand in the market.
Their attention is focused on the monthly reports of OPEC and the International Energy Agency (IEA), which will be published on Tuesday and Wednesday, respectively.
In addition, the American Petroleum Institute (API) on Tuesday, at 23:30, will publish data on oil reserves in the country for the week ended September 8. The market on average expects a decline in reserves by 2 million barrels after a drop of 5.5 million barrels a week earlier, Trading Economics notes. The Energy Ministry will release official data on Wednesday.
The cost of November futures for Brent oil on the London ICE Futures exchange by 14:42 by the end of the quarter is $91.25 per barrel, which is $0.61 (0.67%) higher than at the close of the previous session.
October futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) have risen by $0.71 (0.81%) to $88 per barrel by this time.
Oil prices steady after rising to highest since November, Brent above $90 per barrel
Oil prices were stable on Wednesday after rising to their highest levels since November last year on information about Saudi Arabia’s plans to extend voluntary production cuts until the end of 2023.
The cost of October futures for Brent on the London ICE Futures exchange at 8:10 a.m. on Wednesday is $90.03 per barrel, which is $0.01 (0.01%) lower than the price at the close of the previous session. On Tuesday, these contracts rose by $1.04 (1.2%) to $90.04 per barrel, the highest since November 16.
The price of October futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) fell by $0.03 (0.03%) to $86.66 per barrel. As a result of the previous trading, the value of these contracts increased by $1.14 (1.3%) to $86.69 per barrel, the highest value since November 15.
Saudi Arabia will continue to voluntarily reduce oil production by 1 million bpd until the end of 2023, the kingdom’s state agency reported on Tuesday, citing an official source in the Ministry of Energy.
“Further supply constraints will support oil prices,” analysts at ANZ Group Holdings Ltd. said in a research note. “We are likely to see a significant reduction in oil inventories as a result of these restrictions.
Benchmark oil prices are moving mixed near multi-month highs on Tuesday morning.
The price of November Brent futures on London’s ICE Futures exchange is at $88.87 a barrel by 8:29 a.m. Q2, down 13 cents (0.15%) from the previous session’s close. On Monday, these contracts rose by $0.45 (0.5%) to $89 per barrel.
Quotes of futures for WTI crude oil for October at the electronic trading of the New York Mercantile Exchange (NYMEX) by the specified time rose by 32 cents (0.37%) and amounted to $ 85.87 per barrel. On Monday, the main trades were not held due to a day off in the U.S. (Labor Day).
Prices are supported by expectations of the extension of production reduction measures by OPEC+ countries.
Saudi Arabia is also expected to extend the voluntary production cut by 1 million barrels per day for October.
At the same time, traders regard the signs of possible cooling of the American economy as a reason for the end of the cycle of interest rate hikes by the Federal Reserve, which also strengthens market optimism.
An additional positive factor is the news of an unexpected increase in activity in the manufacturing sector of the Chinese economy. The Purchasing Managers’ Index (PMI) in China’s manufacturing sector in August hit its highest level since February, Caixin Media Co., which calculates the indicator, said on Friday. The index rose to 51 points from 49.2 in July. The consensus forecast, cited by Trading Economics, called for a rise to 49.3 points. A value above the 50-point mark indicates an increase in activity in the sector.
Benchmark oil prices, which ended last week at their highest levels this year, are little changed on Monday morning.
The price of November futures for Brent on the London ICE Futures exchange at 8:08 a.m. is $84.53 per barrel, which is 6 cents (0.07%) higher than at the close of the previous session. Last Friday, these contracts rose by $1.72 (2%) to $88.55 per barrel.
Quotes for WTI futures for October in electronic trading on the New York Mercantile Exchange (NYMEX) by this time increased by 9 cents (0.11%) to $85.64 per barrel. At the end of the previous session, they rose by $1.92 (2.3%) to $85.55 per barrel.
Over the past week, Brent rose in price by 5.5%, WTI by 7.2%, and the two brands ended trading on Friday at their highest levels since November 17 and 16, 2022, respectively.
The quotes were supported by fears of a reduction in supply in the market, as well as positive statistics from China.
The Purchasing Managers’ Index (PMI) in China’s manufacturing industry in August updated its highest level since February, Caixin Media Co. reported on Friday, which calculates the indicator. The index rose to 51 points from 49.2 points in July. A value above 50 points indicates an increase in activity in the sector.
Traders also expect Saudi Arabia to extend its voluntary production cuts by 1 million barrels per day to October.
In addition, the latest US data is “relatively balanced and generally in line with expectations that the peak level of Federal Reserve interest rates has already been reached, which in turn spurs hopes for a soft landing for the US economy,” said Tyler Ritchie of Sevens Report Research.
Meanwhile, data from the oilfield services company Baker Hughes showed that over the past week, the number of operating oil rigs in the United States remained unchanged at 512 units, the lowest since February 2022. The number of gas rigs decreased by 1 to 114.
