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Global oil benchmark Brent crude futures were up 41 cents, or
0.43%, to $94.84 a barrel by 0751 GMT. After breaching $1 gains,
U.S. West Texas Intermediate crude futures were up 92 cents, or
1.01%, to $92.40.
Prices have gained for three consecutive weeks, and both
benchmarks are around 10-month highs.
U.S. oil output from top shale-producing regions is on track to
fall to 9.393 million barrels per day (bpd) in October, the
lowest level since May 2023, the U.S. Energy Information
Administration (EIA) said on Monday. It will have fallen for
three months in a row.
Those estimates come after Saudi Arabia and Russia this month
extended a combined supply cuts of 1.3 million bpd to the end of
the year.
Prices are being supported by concerns over supply tightness and
technical factors, said Kelvin Wong, a senior market analyst at
OANDA in Singapore.
"(There has been) a persistent short-term uptrend seen in the
WTI crude oil futures where prior dips had been held by its
5-day moving average since 29 August...(which is) now acting as
a key short-term support at around $89.90 per barrel," Wong
noted.
"Oil's ascent into overbought territory leaves the market
vulnerable to a correction," analysts from National Australia
Bank wrote in a client note, pointing to volatility after
speeches from Saudi Aramco CEO Amin Nasser and Saudi Arabia's
energy minister on Monday.
The Aramco CEO lowered the company's long-term outlook for
demand, now forecasting global demand to reach 110 million bpd
by 2030, down from a previous estimate of 125 million bpd.
Saudi Arabian Energy Minister Prince Abdulaziz bin Salman on
Monday defended OPEC+ cuts to oil supply, saying international
energy markets need light-handed regulation to limit volatility,
while also warning of uncertainty about Chinese demand, European
growth and central bank action to tackle inflation.
Interest rate decisions are due this week from the central banks
of the U.S., Britain, Japan, Sweden, Switzerland and Norway.
This "will do nothing to calm nerves as the clash between
considerably reduced supply and less than reassuring economic
outlook continues," said PVM Energy's Tamas Varga.
(Reporting by Paul Carsten, Stephanie Kelly in New York and
Andrew Hayley in Beijing; editing by Kirsten Donovan and Jason
Neely)
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