Oil futures rose on Friday, on course for strong weekly gains after trading near 2023 highs as tighter inventories outweighed demand concerns from China and the global economy.
Price action
-
West Texas Intermediate Crude For October Delivery CL00,
+0.78% CL.1,
+0.78% CLV23,
+0.78%
rose 55 cents, or 0.6%, to $87.42 a barrel on the New York Mercantile Exchange, on course for a weekly gain of 2.2%. -
November Brent crude BRN00,
+0.86% brnx23,
+0.86% ,
the global benchmark rose 70 cents, or 0.8%, to $90.62 a barrel on ICE Futures Europe, en route to an increase of 2.3% this week.
Market factors
WTI posted a nine-day winning streak on Thursday, while Brent ended a seven-session winning streak. Both numbers ended Wednesday at the highest level since 2023.
This week’s gains came after Saudi Arabia announced it would extend the 1 million barrels per day production cut that took effect in July until the end of the year, while Russia said it would also extend supply restrictions.
Monthly reports from the International Energy Agency, the Organization of the Petroleum Exporting Countries and the US Energy Information Administration will be closely monitored next week, Barbara Lambrecht, commodities analyst at Commerzbank, said in a Friday note.
“Until now, the International Energy Agency presumably assumed that voluntary austerity measures would be phased out from October onwards and that global supply would lag demand by 1.3 million barrels per day in the fourth quarter. With a shortfall of just under 2 million barrels per day, the deficit is now likely to be nearly as high as it was in the current quarter,” she wrote. “This should support prices well as industrial stocks will continue to lag further behind their five-year average in the coming months.”