The price of oil futures has been steadily climbing, recently exceeding $90 a barrel due to concerns about limited supplies in the market. West Texas Intermediate (WTI) on the New York Mercantile Exchange closed Thursday’s trading session at $90.16 per barrel, its highest closing rate since November 7, according to data from Dow Jones Market. mirrored this trend, achieving its highest closing figure since November 15.
The surge in oil prices is largely attributed to shrinking supplies which have sparked a summer rally for . Notably, Saudi Arabia’s decision to cut production by 1 million barrels a day in July, a measure extended until the end of the year, significantly influenced this development. Additionally, a supply reduction from Russia bolstered anticipation of an increasing supply deficit heading into the fourth quarter.
However, despite high prices being sustained by the anticipated supply deficit expected to last until year-end, there are concerns about demand due to potential slowdowns in the global economy. These apprehensions could potentially offset any further increases in oil prices. Barbara Lambrecht, a commodity analyst at Commerzbank (ETR:), echoed these sentiments.
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