Oil prices jumped on Thursday, with U.S. crude topping $90 a barrel, as expectations of a tighter supply grew.
West Texas Intermediate crude (WTI) gained 1.6% to $90.04 per barrel, hitting its highest level since November 2022. Brent crude was up 1.5%, at $93.23, reaching a 10-month high.
Saudi Arabia and Russia have extended their oil output cuts to the end of 2023, and the move could result in a substantial market deficit for the rest of 2023, the International Energy Agency said on Wednesday.
“From September onwards, the loss of OPEC+ production… will drive a significant supply shortfall through the fourth quarter,” the agency said in its monthly report.
WTI crude is up almost 3% this week, on pace for the third straight weekly gain.
Earlier this week, the OPEC issued updated forecasts of solid demand and also pointed to a 2023 supply deficit if production cuts remain.
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