- WTI gains momentum around $90.90, the highest level since November 2022.
- Oil supply cuts by Saudi Arabia and Russia boost WTI prices.
- Saudi Arabia’s energy minister said OPEC+ is working to keep oil markets stable amid uncertainty over demand from China.
Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around the $90.90 level so far on Tuesday. WTI prices gain momentum due to prospects of tight supply from Saudi Arabia and Russia. However, fear of an economic slowdown in China could limit the rise in WTI prices.
The rebound in WTI prices in recent weeks is favored by oil supply cuts by Saudi Arabia and Russia. However, the world’s two largest oil exporters have announced that they will extend their production cuts until the end of 2023. Until the end of 2023, Saudi oil production will approach 1.3 million barrels per day. Additionally, the International Energy Agency (IEA) warned earlier this week that oil market deficits would worsen in the fourth quarter, with oil production cuts announced in the summer by Saudi Arabia and Russia exacerbating the situation. .
On Monday, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman stated that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are working to keep oil markets stable and improve global energy security, without looking at how target no specific price level for crude oil. However, he added that uncertainty over demand from China is one of the main factors influencing global crude oil prices.
Looking ahead, oil traders will closely monitor the Federal Reserve’s (Fed) interest rate decision on Wednesday. The market expects the Fed to keep interest rates unchanged at its policy meeting on Wednesday, while keeping an additional rate hike on the table. Additionally, the API and IEA will release crude oil inventory data for the week ending September 15. Preliminary S&P Global PMI data for September will be released on Friday. This data could have a significant impact on the price of dollar-denominated WTI.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
