Futures on US West Texas Intermediate Crude Oil were set to register their first weekly advance in three weeks, underpinned by prospects of tightening supply.
Saudi Arabia is largely expected to extend a voluntary production cut of 1 million barrels per day into October in addition to curbs engineered by the OPEC+ group.
Also, Russia’s Deputy Prime Minister said yesterday that the country had already agreed with OPEC+ partners to reduce oil exports.
“We continue to expect cuts to be extended, with prices above US$90/bbl (on a sustained basis) required to draw OPEC supply back to market,” National Australia Bank analysts wrote in an investor note, cited by Reuters.
In terms of demand, US oil consumption has been strong, as commercial crude stockpiles decreased in five of the past six weeks, surveys by the US Energy Information Administration showed.
Demand prospects in Europe and China may be also improving, after a contraction in Euro Area manufacturing activity eased in August, while China’s factory activity returned to growth.
As of 12:22 GMT on Friday WTI Crude Oil Futures for October delivery were gaining 0.94% to trade at $84.42 per barrel.
WTI Crude Futures have surged 6.15% so far this week, following a 1.75% loss in the previous week.
At the same time, Brent Oil Futures for November delivery were gaining 0.75% on the day to trade at $87.48 per barrel.
Brent Oil Futures have risen 4.14% so far this week, following a 0.40% drop in the prior week.