Oil prices rose nearly 1% to a nine-month high on Friday as U.S. diesel futures rose and worries about oil supply shortages after Saudi Arabia and Russia extended cuts to production this week.
Brent crude futures closed 73 cents, or 0.8%, higher at $90.65 a barrel, while U.S. crude oil (WTI) futures rose 64 cents, or 0.7% , at $87.51.
Both benchmark markets technically remained in overbought territory for the sixth consecutive day, with Brent closing at its highest level since November 16.
WTI closed at its highest level since September 6, when it hit its highest since November.
For the week, both benchmarks rose about 2%, following last week’s gains of about 5% for Brent and about 7% for WTI.
“Oil prices continue to be driven by supply-side factors. No one doubts that OPEC+ will keep this market tight through the winter,” Edward Moya, senior market analyst at the data firm, said in a note and Oanda analysis.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, such as Russia, are collectively known as OPEC+.
This week, Saudi Arabia and Russia extended combined voluntary production cuts by 1.3 million barrels a day through the end of the year.
Saudi Arabia will likely struggle to end cuts at the end of the year without triggering a drop in prices, analysts at Commerzbank said in a note.
The oil market is also still concerned about the demand outlook in China, which has had a slow post-pandemic recovery and stimulus promises have fallen short of expectations.
Source: Terra
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