Page 19 - Pec News Today

While pledges from OPEC+ members are making headlines, it is the constant inventory draws in the U.S. that are tightening oil markets.

Goldman Sachs sees oil prices going as high as $107 per barrel next year if OPEC+ producers maintain their production cuts.

Oil Prices: Both benchmarks had spiked earlier in the week after Saudi Arabia and Russia, the worlds top two oil exporters, extended voluntary supply cuts to the year-end. These were on top of the April cuts agreed by several OPEC+ producers running to the end of 2024.

Oil Updates: Brent crude futures edged up 12 cents to USD 90.72 a barrel by 0019 GMT, while U.S. West Texas Intermediate crude (WTI) futures gained 11 cents to USD 87.65.

The increase in prices for the Russian grade was due to Russia's pledge to cut oil exports in August by 500,000 barrels per day (bpd) in cooperation with OPEC+ to balance oil markets.

Benchmark Brent oil futures are trading at their highest this year at above $90 a barrel

Oil Market Updates: While the market sees the fair price for oil at USD 72 to USD 88 per barrel, "the markets are probably a bit too relaxed," Ben Luckock, co-head of oil trading at Trafigura, told the APPEC conference in Singapore.

The dual announcements from Riyadh and Moscow pushed benchmark Brent crude above $90 a barrel in trading Tuesday afternoon, a price unseen in the market since last November.

Russia will extend its voluntary cut in oil exports by 300,000 barrels per day until the end of 2023, Deputy Prime Minister Alexander Novak said on Tuesday.

Oil Prices: The sustained upward price movement comes after both contracts settled at their highest levels in more than half a year last week, breaking a two-week losing streak.