By Anadolu Agency
September 28, 2023 7:02 amISTANBUL
Oil prices surged on Thursday as data showing greater demand in the US, the world’s largest oil consumer, contributed to fears of tight global supplies.
International benchmark crude Brent traded at $94.94 per barrel at 10.05 a.m. local time (0705 GMT), a 0.61% gain from the closing price of $94.36 a barrel in the previous trading session on Wednesday.
The American benchmark West Texas Intermediate (WTI) traded at the same time at $94.42 per barrel, up 0.79% from Wednesday’s close of $93.68 per barrel.
Both benchmarks are trading near their highest levels of the year as shrinking US crude inventories feed a tighter supply outlook.
US commercial crude oil inventories fell by around 2.2 million barrels to 416.3 million barrels, compared to the American Petroleum Institute’s expectation of a rise of around 1.6 million barrels, according to data released by the Energy Information Administration (EIA) on Wednesday.
The decrease in stocks signaled a brighter demand outlook in the country but added to fears of tightening global oil supplies this year.
Supply concerns triggered by output cuts in Saudi Arabia and Russia of around 1.3 million barrels per day (bpd) until the end of the year ensured both benchmarks hovered around their highest levels of the year.
The Russian government’s decision on Sep. 21 to limit the export of gasoline and diesel fuel to balance the domestic market also exacerbates supply concerns.
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