WTI crude oil is up 0.58% to $89.35 today as of 11:14 a.m. EST. Prices are now inching ever closer to levels last seen in November 2022 as supply becomes tight and the global economy continues to remain resilient.
While Saudi Arabia and Russia recently decided to keep their production cuts in place, OPEC now expects oil demand to remain robust in 2023 and 2024, with a projected rise of 2.25 million barrels a day in 2024.
Numbers from the American Petroleum Institute indicate a rise of nearly 1.17 million barrels in U.S. commercial stockpiles during the week ending September 8. Additionally, numbers from the Energy Information Administration point to an increase of nearly 4 million barrels in crude inventories during the same period. In comparison, crude inventories had decreased by about 6.3 million barrels in the prior week, and the Street had anticipated a decrease of 1.9 million barrels for the week ending September 8.
Meanwhile, natural gas is up 0.55% to $2.76 today but remains nearly 38% lower year-to-date. Prices have surged by nearly 6.5% over the past five sessions on expectations of moderating inventory levels.
The United States Oil Fund ETF (USO) has gained nearly 18% for the year so far, and with oil prices expected to remain buoyant, more gains could be on the horizon.
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