Even as supply is being curtailed, Brent is above $90 per barrel after slight drop in early trade

11 Sep 2023 , 09:30 AM

Although Brent remained perched around $90 a barrel, backed by tightening supplies after Saudi Arabia and Russia extended supply restrictions, oil prices dipped in early Asian trade on Monday as economic concerns in China impacted on the forecast for gasoline demand.

Brent crude had decreased by 49 cents, or 0.5%, to $90.16 per barrel, while U.S. West Texas Intermediate crude had down by 74 cents, or 0.9%, to $86.77 per barrel.

Following Saudi Arabia and Russia’s announcement last week that they will prolong voluntary supply restrictions of a combined 1.3 million barrels per day until the end of the year, both futures have risen for the previous two weeks in a row, with Brent finishing at its highest level since November on Friday.

This week, the monthly reports from the International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC) are scheduled for release.

According to Baker Hughes’ weekly report, producers in the United States installed an oil rig for the first time since June last week, although the overall count was still 127, or 17%, lower than at the same time last year.

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