Oil prices rose to a fresh 10-month high for the fifth straight session and were set to post a third weekly gain as supply tightness spearheaded by Saudi Arabian production cuts combined with optimism around Chinese demand, Reuters reports.
By 15:01 GMT, WTI futures were up 45 cents, or 0.5%, to $90.61 a barrel and Brent futures were up 4 cents to $93.74 a barrel. Brent futures rose as high as $94.63 earlier in the session, their highest since November 2022.
Both contracts are up about 4% for the week, and on pace for their biggest quarterly increase since Russia’s invasion of Ukraine in the first quarter of 2022.
Supply concerns continue to be a driving force for oil prices since Saudi Arabia and Russia this month announced an extension of their combined 1.3 million barrel per day supply cuts to the end of this year, said Fiona Cincotta, analyst at City Index.
Better-than-expected industrial output and retail sales data from China has also given a boost to oil prices this week, with the country’s economic conditions considered crucial to oil demand for the rest of this year, Cincotta added.
Data on Friday also showed oil refinery processing rose by nearly a fifth from a year earlier as processors kept run rates high to capitalise on high global demand for oil products.