Oil prices rise amid concerns over tight crude supply ahead of winter

Oil prices are rising midweek, adding around two percent this afternoon and continuing to trend higher. The main driver is concern over tight crude supply ahead of winter, as production has been curbed by voluntary output cuts introduced by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+.

The price of North Sea Brent crude topped 96 dollars shortly after 17:00 CEST and later reached 97 dollars per barrel. It was up by more than three percent, Reuters reported. US light crude WTI was also up by more than three percent at the same time, trading at nearly 93.70 dollars per barrel.

„Until a decision is made to increase production, the global energy market will remain tight, and the risk of a significant correction will remain relatively low during this period,“ said Ole Hansen, an analyst at Saxo Bank.

Saudi Arabia and Russia, both members of OPEC+, have extended voluntary production cuts totaling 1.3 million barrels per day through the end of this year. Markets are also concerned that US oil stocks at the key storage hub of Cushing, Oklahoma, could fall below the minimum operating level. However, data released on Tuesday showed that US oil inventories rose by about 1.6 million barrels last week, while analysts had expected a decline of around 300.000 barrels.