Price action
- West Texas Intermediate crude for October delivery rose 55 cents, or 0.6%, to $87.42 a barrel on the New York Mercantile Exchange, on track for a 2.2% weekly gain.
- November Brent crude, the global benchmark, was up 70 cents, or 0.8%, at $90.62 a barrel on ICE Futures Europe, headed for a 2.3% advance on the week.
Market drivers
- Gains this week came after Saudi Arabia announced it would extend a production cut of 1 million barrels a day, which took effect in July, through the end of the year, while Russia said it would also extend supply cuts.
- Monthly reports from the International Energy Agency, the Organization of the Petroleum Exporting Countries and the U.S. Energy Information Administration will be closely watched next week. The reports are expected to provide insights into supply and demand dynamics in the oil market.
- According to Barbara Lambrecht, a commodity analyst at Commerzbank, recent data suggests that global supply will fall short of demand by almost 2 million barrels per day in the fourth quarter. This is likely to further support prices, as industrial stocks continue to fall behind the five-year average in the coming months.
Would you like to try out trading with an Expert Advisor?
