London, Sept. 12, 2023 – Oil prices rose about 1% on Tuesday boosted by a tighter supply outlook, while investors awaited macroeconomic data that could indicate whether interest rates will rise further in the United States and Europe.
November Brent crude futures rose 67 cents, or 0.7%, to $91.31 a barrel at 0949 GMT, while U.S. West Texas Intermediate crude futures for October firmed by 76 cents or 0.9% to $88.05.
Brent breached $90 a barrel last week for the first time in 10 months after Saudi Arabia and Russia announced they would extend voluntary supply cuts of a combined 1.3 million barrels per day (bpd) until the end of the year.
“There is little doubt that the oil industry feels a collective rally risk with a perception of, and actual tightening in parts of oil flow,” PVM Oil analyst John Evans said.
The Organization of the Petroleum Exporting Countries (OPEC) will release it’s monthly oil market report later today, followed by a report by the International Energy Agency on Wednesday. Both reports include widely used forecasts on the outlook of oil market supply and demand fundamentals.
In Libya, a deadly storm led the OPEC member to shut four of its eastern oil export terminals on Saturday.
Meanwhile, August U.S. consumer price index data, due for release on Wednesday, is expected to give some hints on the direction of interest rates from the world’s biggest oil consumer the United States.
The Federal Reserve is widely expected to leave interest rates unchanged at a policy meeting next week, though views are split over whether the Fed will hike or pause again in November.
The European Central Bank will announce its interest rate decision on Thursday. The European Commission on Monday forecst the euro zone to grow more slowly than previously expected in 2023 and 2024.
Investors also awaited industry data on U.S. crude stocks due at 2030 GMT on Tuesday. Crude inventories were expected to have fallen by about 2 million barrels in the week to Sept. 8, a preliminary Reuters poll showed on Monday. (Reuters)
