Oil prices rose for the fourth day in a row on Friday, after Saudi Arabia pressured their allies to stick to production quotas and banks predicted a supply deficit, allowing crude oil to gain a weekly gain of 10%.
Some banks are predicting that Brent will rise to $ 45 a barrel in the fourth quarter and $ 55 by mid-2021, pointing to the possibility of shortage of supply in the oil market.
And some analysts estimate that the market will have a deficit of 3 million barrels a day (bpd) in the fourth quarter, and they say that Brent is aiming to reach $ 49 by the end of the year and $ 65 in the third quarter of 2021.
Brent crude oil LCOc1 was up 18 cents at $43.48 a barrel by 0756 GMT while West Texas Intermediate ( WTI) oil futures CLc1 rose 17 cents to $41.14.
Both contracts made the strongest weekly gains since early June, after Hurricane Sally cut US production, and OPEC and its allies took recovery steps.
Meanwhile, a tropical depression in the western part of the Gulf of Mexico risks turning into a hurricane in the coming days and could potentially threaten more U.S. oil facilities. This means anticipation of another regional cut in US oil production in the near future.
As previously agreed, the Organization of Petroleum Exporting Countries (OPEC) and its allies are implementing the decision to reduce production by 7.7 million barrels per day. The group stressed at the meeting held on Thursday that it will take action against members who do not comply with the agreement.
Meanwhile, the group is expected to suspend its plans to reduce the cut to 5.8 million barrels a day when it meets again in December.
In the Gulf of Mexico, there was a rebound Thursday after US offshore drillers and exporters were shut down for five days due to Hurricane Sally and idle rigs resumed drilling.