Oil futures rose Friday, extending a push above the $90-a-barrel threshold, on continued worries over tight supplies.
Price action
-
West Texas Intermediate crude
CL00,
-0.38%
for October delivery
CL.1,
-0.38% CLV23,
-0.38%
rose 45 cents, or 0.5%, to $90.61 a barrel on the New York Mercantile Exchange, on track for a weekly jump of 3.6%. -
November Brent crude
BRN00,
-0.46% BRNX23,
-0.46% ,
the global benchmark, was up 44 cents, or 0.5%, at $94.14 a barrel on ICE Futures Europe, headed for an advance of 3.8% on the week.
Market drivers
WTI settled Thursday at $90.16 a barrel on the New York Mercantile Exchange, the highest finish for a front-month contract since Nov. 7, according to Dow Jones Market Data. Brent saw its highest close since Nov. 15.
Tightening supplies have propelled a summer rally for crude. A 1 million-barrel-a-day production cut implemented by Saudi Arabia in July and recently extended through the end of the year, alongside with a supply cut from Russia, have solidified expectations for a growing supply deficit heading into the fourth quarter.
“The supply deficit that is likely to characterise the oil market until the end of the year should support oil prices at high levels. Concerns about demand in a cooling global economy, however, argue against a further rally,” said Barbara Lambrecht, commodity analyst at Commerzbank, in a note.
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