A projected draw in US crude stock has pushed up oil prices

7 Sep 2023 , 09:55 AM

After industry statistics revealed that U.S. crude oil inventories were anticipated to have decreased last week, signaling a tightening of supplies on top of ongoing production cuts in Saudi Arabia and Russia, oil prices nudged up on Thursday.

Brent crude futures had increased by 12 cents to $90.72 per barrel, while West Texas Intermediate (WTI) crude futures had increased by 11 cents to $87.65.

5.5 million barrels were expected to be removed from U.S. crude oil stockpiles in the week ending September 1, according to market sources quoting American Petroleum Institute data that was made available aftermarket settlement.

On Thursday, at 11 a.m. EDT (1500 GMT), the U.S. Energy Information Administration is expected to release official inventory statistics.

After Saudi Arabia and Russia extended their voluntary oil supply restrictions through the end of the year, prices rose on Tuesday. Saudi Arabia reduced production by 1 million barrels per day (bpd), but Russia reduced production by 300,000 bpd. These came in addition to the April cut that certain OPEC+ producers decided to extend to the end of 2024.

Both nations will assess the state of the market and decide whether to intensify production cutbacks or increase output every month.

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