PT Solid Gold Berjangka | Oil Tests November High After OPEC+ Leaders Extend Supply Cuts

07:05 06 September in Commodity, SOLID GOLD BERJANGKA | SOLID GROUP

Oil held near the highest since November after OPEC+ leaders Saudi Arabia and Russia announced that they would extend supply curbs through the end of the year, tightening the global market.

West Texas Intermediate traded near $87 a barrel after the twin announcements on Tuesday, which drove a 1.3% gain. While traders had anticipated the volume of the cuts, the duration was unexpected.

The strategy from Riyadh and Moscow will help to drain inventories further, while driving the market’s underlying timespreads further into backwardation, a bullish pricing pattern. The gap between WTI’s two nearest December contracts has surged to the widest since mid-2022.

Oil has rallied sharply this quarter after the Organization of Petroleum Exporting Countries and its allies adopted group-wide supply cuts that were then supplemented by additional, voluntary reductions. The production restraints have been implemented just as the International Energy Agency estimates that global crude consumption is running at a record pace.

Goldman Sachs Group Inc. said that the moves by OPEC+ brought bullish risks to its outlook for prices, according to a report. The bank’s analysts outlined several scenarios, including one that saw Brent extending gains to above $100 a barrel, although they stressed that this wasn’t a base-case view.

After the Saudi and Russian moves, attention will fall on stockpiles, with one industry estimate pointing to another draw at the key hub at Cushing, Oklahoma. Official data are due on Thursday, a day later than usual given the US holiday on Monday.

WTI for October delivery fell 3 cents to $86.66 a barrel at 6:01 a.m. in London.

Brent for November settlement was steady at $90.03 a barrel.

Source : Bloomberg

Minyak WTI brent oil Oil, Crude Oil

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