Due to tightening supply, oil is expected to end a two-week losing streak

1 Sep 2023 , 10:45 AM

Due to tightened supplies and hopes that the OPEC+ group of oil producers will extend output cuts through the end of the year, oil prices gained for a fourth straight session on Friday, poised to break a two-week losing run.

The price of West Texas Intermediate crude (WTI), a major benchmark, increased by 7 cents, or 0.1%, to $83.70 per barrel in early Asian trading, while Brent crude also increased by 7 cents to $86.90 per barrel.

According to official statistics released on Wednesday, increased exports and refinery runs caused a 10.6-million-barrel drop in U.S. crude stockpiles last week that was more than predicted. Since the middle of July, commercial crude oil stockpiles have fallen by 34 million barrels.

It’s common to use changes in U.S. inventories as a stand-in for the global demand-supply balance. Continuous depletion is considered a sign of a probable supply shortage.

For feedback and suggestions, write to us at [e-mail]