|
Saudi Arabia and Russia's extension of 1.3 million barrels per
day (bpd) of crude oil production cuts to the end of this year
will lock in a substantial market deficit through the fourth
quarter, the International Energy Agency (IEA) said on
Wednesday.
The continuing supply cuts could lift Brent futures above the
$100 a barrel threshold before the end of the year, Bank of
America analysts said on Wednesday.
Benchmark Brent futures rose 57 cents, or 0.62%, to $92.63 a
barrel by 1006 GMT while U.S. West Texas Intermediate (WTI)
crude gained 57 cents, or 0.64%, to $89.41.
Front-month Brent futures contracts traded as high as $4.68 a
barrel above those for delivery six months further out on
Tuesday, a width of spread not breached since last November,
indicating tighter market supply.
Concern over European and U.S. economies persist, however, and
investors await the release of U.S. consumer price index data
later on Wednesday for possible insight on future interest rate
moves.
Forecasters expect the European Central Bank to raise interest
rates at its meeting on Thursday.
The IEA's fourth-quarter demand growth forecast, meanwhile, was
revised down by 600,000 bpd in what Investec analyst Callum
Macpherson said was a significant adjustment.
"The deficit is now broadly equal to the Saudi additional
voluntary cut," he said.
The Organization of the Petroleum Exporting Countries (OPEC) on
Tuesday stuck to its forecasts for robust growth in global oil
demand in 2023 and 2024.
Four oil ports shut in by powerful storms in Libya reopened on
Wednesday.
(Reporting by Robert Harvey, Yuka Obayashi and Muyu XuEditing by
David Goodman)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
