New York — Oil prices rose on Tuesday for the fourth consecutive session, as weak shale output in the US spurred further concerns about a supply deficit stemming from extended production cuts by Saudi Arabia and Russia.
US West Texas Intermediate crude futures rose 99c, or 1.1%, to $92.47, by 4am GMT, while global oil benchmark Brent crude futures rose 58c, or 0.61%, to $95.01 a barrel.
Prices have gained for three consecutive weeks, and are now around 10-month highs for both benchmarks.
US oil output from top shale-producing regions is on track to fall to 9.393-million barrels per day in October, the lowest level since May 2023, the US energy information administration said on Monday. It will have fallen for three months in a row.
Those estimates come after Saudi Arabia and Russia this month extended a combined 1.3-million barrels per day of supply cuts to the end of the year.
“Oil’s ascent into overbought territory leaves the market vulnerable to a correction,” analysts from National Australia Bank wrote in a client note, pointing to volatility after speeches from Saudi Aramco CEO Amin Nasser and Saudi Arabia’s energy minister on Monday.
The Aramco CEO lowered the company’s long-term outlook for demand, now forecasting global demand to reach 110-million barrels per day by 2030, down from the last estimate of 125- million barrels.
Saudi Arabia’s energy minister Prince Abdulaziz bin Salman on Monday defended oil cartel Opec’s cuts to oil market supply, saying international energy markets need light-handed regulation to limit volatility, while also warning of uncertainty about Chinese demand, European growth and central bank action to tackle inflation.