Tuesday, 19 September 2023 11:00 WIB | OIL |MinyakMinyak WTIMinyak MentahMinyak BrentOil,

Oil rallied to a 10-month high as the physical market showed fresh signs of tightness driven by supply cuts from OPEC+ leaders.

Global benchmark Brent topped $95 a barrel for the first time since November, advancing for a fourth straight day. Premiums for physical barrels are surging as refiners struggle to make enough diesel ahead of a seasonal ramp-up in demand. The tighter market has spurred predictions from the likes of Chevron Corp. Chief Executive Officer Mike Wirth that $100 oil will return.

Crude has rallied by more than 30% since mid-June as Saudi Arabia and Russia curtailed exports in a bid to drain inventories and drive a rebound in prices. An improving outlook in the world’s two biggest economies — the US and China has also supported oil’s advance. The surge in energy costs looks set to boost inflationary pressures, complicating the task facing central bankers.

Saudi Arabia Energy Minister Prince Abdulaziz bin Salman said on Monday that the Organization of Petroleum Exporting Countries is working to keep oil markets stable and improve global energy security, without targeting any specific price level. Output plans will be reviewed every month, he said.

Brent for November settlement rose 0.6% at $95.02 a barrel at 11:53 a.m. in Singapore. West Texas Intermediate for October delivery gained 1% to $92.51 a barrel.

Source : Bloomberg

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