WTI Crude Oil Surges Over 1% Amid Concerns About Tight Oil Supplies
InfoQuest – In a significant uptick, the price of West Texas Intermediate (WTI) crude oil experienced a surge of more than 1%, breaking through the $91 level due to mounting worries surrounding limited oil supplies.
Rising prices and market trends
During the trading session on the NYMEX market, the West Texas Crude Oil Contract (WTI) for October delivery showed an impressive rise of $0.93 or 1.02%, reaching $91.70 per barrel at 7:42 pm Thai time.
This surge marks the third consecutive week of price increases for WTI crude oil. Furthermore, the current price point represents the highest level witnessed since November 2022, with analysts suggesting that it may potentially record the highest quarterly increase since the first quarter of 2022 when Russia launched its offensive against Ukraine.
With this steady climb, industry analysts now speculate that oil prices could surpass the $100 per barrel mark.
Expert predictions and market influences
The Bank of America report stated, “If OPEC+ continues to reduce production until the end of this year, coupled with the high oil demand in Asia, we believe Brent crude prices will exceed $100 per barrel before 2024.”
JPMorgan’s chief energy analyst, Christian Malek, voiced his opinion, asserting that in the short term, oil prices are likely to trade within the range of $80 to $100, with an estimated long-term value of $80.
The International Energy Agency (IEA) warned that the ongoing cuts in oil supply by Saudi Arabia and Russia could lead to a shortage in the market during the fourth quarter.
In response to this potential crisis, Saudi Arabia announced an extension of their voluntary oil production cut of 1 million barrels per day until the end of this year. Additionally, Russia extended its oil export cut by 300,000 barrels per day during the same period.
The recent boost in oil prices was further supported by positive economic indicators from China, with higher-than-expected industrial output and retail sales reported for the month of August.
Furthermore, the European Central Bank (ECB) provided positive signals regarding a halt to interest rate increases, while the Federal Reserve (Fed) is expected to maintain interest rates during its upcoming meeting this week.
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WTI oil price surges more than 1%, breaking through $91, worries about tight oil supplies.
InfoQuest – WTI crude oil futures rose more than 1%, breaking through the 91 level amid concerns about tight oil conditions.
At 7:42 pm Thai time, the West Texas Crude Oil Contract (WTI) will be delivered in October. which was traded on the NYMEX market, added $0.93 or 1.02% to $91.70/barrel.
WTI oil prices have risen for 3 consecutive weeks, reaching the highest level since November 2022. and is likely to record the highest quarterly increase since Russia sent troops to attack Ukraine in the first quarter of 2022.
Analysts predict that oil prices will soon exceed $100 per barrel.
“If OPEC+ continues to reduce production until the end of this year, Meanwhile, Asia has high demand for oil. We believe Brent crude prices will exceed $100 per barrel before 2024,” the Bank of America report said.
Christian Malek, chief energy analyst at JPMorgan, said he believes oil prices will trade in the $80-$100 range in the short term and $80 in the long term.
The International Energy Agency (IEA) warned that Saudi Arabia and Russia are cutting oil supply This will cause the market to experience a shortage of oil in the 4th quarter.
Saudi Arabia announces an extension of a voluntary oil production cut of 1 million barrels per day until the end of this year. Meanwhile, Russia has extended its oil export cut to 300,000 barrels a day until the end of this year as well.
Oil prices also received support after China revealed higher-than-expected industrial output and retail sales in August.
In addition, the market received positive factors from the European Central Bank (ECB) signaling an end to interest rate increases. Although it is expected that the Federal Reserve (Fed) will maintain interest rates at the meeting this week.
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