Oil prices rose for a fourth straight session on Tuesday as weak shale gas production in the United States raised concerns about a supply shortfall caused by prolonged production cuts by Saudi Arabia and Russia.
Brent crude futures were up 46 cents, or 0.49%, at $94.89 a barrel by 0630 GMT, while West Texas Intermediate crude (WTI) futures were up 98 cents, or 1.1%, at $92.46 a barrel.
Prices have risen for three consecutive weeks and are currently at nearly 10-month highs for both indicators.
Oil production from the top US shale-producing regions is on track to fall to 9.393 million barrels per day (bpd) in October, the US Energy Information Administration (EIA) said on Monday. In this case, production will have fallen for three consecutive months.
These estimates come after Saudi Arabia and Russia this month extended supply cuts totaling 1.3 million barrels (bpd) until the end of the year.
Prices are supported by concerns about supply tightness and technical factors.
There has been a persistent short-term upward trend in WTI crude oil futures, with previous declines in the 5-day moving average continuing since August 29. Support is around $89.90 per barrel.
Oil’s rise to overbought territory leaves the market vulnerable to a recovery. The long-term demand outlook is uncertain, with global demand forecast to fall from 125 million barrels per day to 110 million barrels per day by 2030.
Saudi Arabian Energy Minister Prince Abdulaziz bin Salman defended OPEC+ supply cuts in the oil market and said international energy markets need light regulations to limit volatility, while also warning of uncertainty regarding Chinese demand, European growth, and central banks’ actions to fight inflation.
