Oil Rises as Supplies Tighten

by Bloomberg | Julia Fanzeres
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas

Oil edged higher as the effect of rapidly tightening supplies outweighed a weakening risk appetite in broader markets.

Oil settled near $91 a barrel, reversing earlier losses that were spurred by investors wrestling with the possibility of a prolonged period of higher interest rates. Traders continue to see signs of supply scarcity as the premium for near-term US oil barrels is hovering at the most expensive in over a year, indicating a market deficit.

“Crude looks well supported, with today’s initial declines being short-lived as the market rebounded around the highs from earlier this month,” said Craig Erlam, senior market analyst at Oanda. “We may still see more of a correction, but there’s no clear sign of sentiment turning bearish after such a strong rally over the summer.”

Oil has surged more than 25% since the end of June, heading for its biggest quarterly gain since early 2022, on the back of supply curbs from OPEC+ leaders Saudi Arabia and Russia. The rally has rekindled talk of $100-a-barrel crude, but the gains lost momentum over the past week amid concerns about the macroeconomic backdrop.

Prices:

• WTI for November delivery rose 71 cents to settle at $90.39 a barrel in New York.
• Brent for November settlement advanced 67 cents to settle at $93.96 a barrel.

by Bloomberg | Julia Fanzeres
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas