thejoyofsaving.comCrude Oil Prices have gained for three consecutive weeks, with both benchmarks reaching their highest since last year.
US oil output from top shale-producing regions is on track to fall to 9.393 million barrels per day (bpd) in October, the lowest since May 2023
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Tuesday saw an almost 1% increase in oil prices to new 10-month highs as sluggish shale production in the United States added to supply concerns resulting from Saudi Arabia and Russia’s continued production curbs.
By 10:52 a.m. EDT (1452 a.m. GMT), benchmark Brent oil futures had increased $1.02, or 1.1%, to $95.45 per barrel. The highest price per barrel since November was reached throughout the session, at $95.96.
Following a peak of $93.74 per barrel, also the best since November, U.S. West Texas Intermediate crude futures were up $1.30, or 1.4%, to $92.78.
Prices are expected to rise for the fourth straight session.
According to Price Futures Group analyst Phil Flynn, “The market is starting to realize that wherever you look there are concerns about tight supply, whether it’s crude oil, diesel, or gasoline.” We are being confronted with reality.
The U.S. Energy Information Administration reported on Monday that U.S. oil output from the country’s major shale-producing regions is on track to drop to 9.393 million barrels per day (bpd) in October, the lowest level since May 2023, adding fuel to such worries. That would be the third monthly decline in a row.
These projections follow Saudi Arabia and Russia’s decision this month to prolong their joint production restrictions of 1.3 million bpd until the end of the year as members of the OPEC+ producer group.
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In order to address gasoline shortages, sources told Reuters on Tuesday that Russia’s government is considering imposing export tariffs on all types of oil products at a rate of $250 per metric ton from October 1 through June 2024, a significant increase above existing rates.
Market traders anticipated information on U.S. oil stocks, which experts surveyed by Reuters said would have decreased by around 2.7 million barrels last week.
The American Petroleum Institute’s industry data was expected at 4:30 p.m. EDT (2030 GMT) on Tuesday, while U.S. government data was due at the same time on Wednesday.
Some think that rising petroleum prices may have peaked.
The market is vulnerable to a correction as a result of oil’s rise into overbought territory, according to National Australia Bank analysts, who also noted Monday’s volatility following statements by Saudi Aramco CEO Amin Nasser and the country’s energy minister.
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