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Oil prices ease after hitting 10-month highs as investors take profits

Published 09/18/2023, 08:37 PM
Updated 09/19/2023, 05:06 PM
© Reuters. FILE PHOTO: Pump jacks operate at sunset in an oil field in Midland, Texas U.S. August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo

By Stephanie Kelly

(Reuters) -Oil prices rose to 10-month highs on Tuesday before easing, as investors took profits following three sessions of gains that followed extended production cuts from Saudi Arabia and Russia.

Global benchmark Brent crude futures settled 9 cents lower at $94.34 a barrel. Earlier, it hit a session peak of $95.96 a barrel, their highest since November.

U.S. West Texas Intermediate crude futures dropped 28 cents to $91.20 after earlier reaching $93.74 a barrel, also the highest since November.

After Brent topped $95 a barrel on Tuesday, investment bank UBS said in a note it started taking profits. Still, strategists there expect Brent to trade in a range of $90-100 per barrel over the coming months, with a year-end target of $95 per barrel.

Feeding supply concerns, OPEC+ members Saudi Arabia and Russia this month extended combined supply cuts of 1.3 million barrels per day (bpd) to the end of the year.

Russia's government is considering imposing export duties on all types of oil products of $250 per metric ton - much higher than current fees - from Oct. 1 until June 2024 to tackle fuel shortages, sources told Reuters on Tuesday.

Further, U.S. oil output from top shale-producing regions is on track to fall to 9.393 million bpd in October, the lowest since May 2023, the U.S. Energy Information Administration said on Monday. That would be a third consecutive monthly fall.

Industry data on Tuesday showed U.S. crude oil stockpiles fell last week by about 5.25 million barrels, according to market sources citing American Petroleum Institute figures on Tuesday. Analysts had expected a 2.7 million-barrel decline [API/S]

U.S. government data on inventories is due on Wednesday.

There are some demand uncertainties that could weigh on the market.

On Monday, Saudi Aramco (TADAWUL:2222) CEO Amin Nasser lowered the company's long-term outlook for global demand to 110 million bpd by 2030 from a previous estimate of 125 million bpd.

Saudi energy minister Prince Abdulaziz bin Salman defended OPEC+ supply cuts, saying international energy markets need light regulation to limit volatility, while warning of uncertainty over Chinese demand, European growth and central bank measures to tackle inflation.

Interest rate decisions are due this week from the central banks of the U.S., Britain, Japan, Sweden, Switzerland and Norway.

© Reuters. FILE PHOTO: Pump jacks operate at sunset in an oil field in Midland, Texas U.S. August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo

Wall Street's main indexes dropped on Tuesday, with the Nasdaq and the S&P 500 hitting their lowest in over three weeks as Treasury yields rose ahead of the U.S. Federal Reserve's policy meeting this week. [.N]

The central bank is expected to hold benchmark interest rates at the current 5.25%-5.50% range on Wednesday, as core inflation crawls toward the Fed's 2% target.

Latest comments

Oil is cheap. US projected to keep spending to the tune of 44Trillions in debt within 3 years. Yellen says no slowdown.
Ia everyday is the same day? I saw this news on last 2 weeks repeatedly
The uptrend is short lived if it keeping going. Then the hard downtrend will come. Is gravity law. Big up come big down visa versa
Consider using factors better related to the market, e.g. supply/demand, instead of “gravity”.
The oil uptrend is unstoppable at the moment. Folks who missed the rally better learn from own mistakes instead of barking or whining.
 I see one creature with suffering backside hole in this exchange, and for sure it is not me. Go and play in a sandbox, little fool.
I’m not suffering from anything. I could care less which way the market is going. I will make money regardless. Do you have any other words in your vocabulary little fool?
 I just replied to your silly attacks, little fool; and no one cares whether you “make money”.
Such a big joke… :)
Paid fake news
The new 2021 hyper-inflated dollar just doesn't cut it any more with the oil cartel.  There will be no correction, just more inflation.
news should be: Oil Supply deficit news rise in media due to high oil
Lets go Brandon!
Remember the fed said in 2021-2022 that their jobs is bringing down Oil Prices and Inflation. So if Oil Prices is as high as now and th fed doing nothing (means Pause or even Cut Prices), the fed is lose
oil prices? you high?
Seems oil prices will fall down
Same story posting every day many times
AI written and has no interest except for newcomers
posted 2 time in last one hour and 50 times in few days. guys this is just a scammer. spamming for being bullish on oil which is going to dump because Saudi not paid enough to write articles with different content and old news can not pump again and again.
how much you got for circulating a single news 20 times? same heading same content just copy paste in 2 3 hours.
fuq this spammer keeps repeating the same news everyday
14 million EV a year......current run rate.
cutting supply because demand is falling quickly.
fake market is oil
Copy , paste and repeat everyday. Spammer
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