Futures on US West Texas Intermediate Crude Oil gained for a fourth straight trading day on Tuesday, after weak US shale production added to supply deficit concerns.
Both WTI Futures and Brent Futures have surged for three successive weeks, while trading in proximity to ten-month highs.
According to the US Energy Information Administration, US oil production from key shale-producing regions is set to decrease to 9.393 million barrels per day in October, or a level not seen since May.
That projection came after Saudi Arabia and Russia earlier in September extended their combined 1.3 million barrels per day of supply cuts until the end of the year.
“(There has been) a persistent short-term uptrend seen in the WTI crude oil futures where prior dips had been held by its 5-day moving average since 29 August…(which is) now acting as a key short-term support at around $89.90 per barrel,” Kelvin Wong, senior market analyst at OANDA, was quoted as saying by Reuters.
Meanwhile, Saudi Aramco Chief Executive Officer Amin Nasser on Monday lowered the firm’s long-term demand outlook. The company now expects global oil demand to reach 110 million barrels per day by the end of the decade, compared with a previous forecast of 125 million barrels per day.
As of 9:46 GMT on Tuesday WTI Crude Oil Futures for November delivery were gaining 0.77% to trade at $91.28 per barrel.
At the same time, Brent Oil Futures for November delivery were gaining 0.43% on the day to trade at $94.84 per barrel.
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