Oil Futures Extend Price Gains Above $90-a-Barrel Threshold
Oil prices continue to rise above $90-a-barrel due to tightening supplies, with weekly gains expected. Concerns about demand in a cooling global economy may limit further price gains.
Both WTI and Brent are on track for weekly gains of 3.6% and 3.8% respectively.
WTI settled at $90.16 a barrel on Thursday, marking its highest finish for a front-month contract since November 7. Meanwhile, Brent saw its highest close since November 15.
Crude oil prices have been soaring due to tightening supplies. Saudi Arabia's 1 million-barrel-a-day production cut, implemented in July and extended through the end of the year, along with a supply cut from Russia, have solidified expectations for a growing supply deficit in the fourth quarter.
While the supply deficit is likely to support oil prices at high levels, concerns about demand in a cooling global economy suggest caution against anticipating further price gains, according to Barbara Lambrecht, a commodity analyst at Commerzbank.