Oil Prices Inch Higher over Supply Concerns

Oil Prices Inch Higher over Supply Concerns

Oil prices increased on Thursday on concerns over tight global supplies ahead of the winter months. International benchmark Brent crude traded at $90.50 per barrel, an increase of 0.75% from the closing price of $89.83 a barrel in the previous trading session.

Prices have been swinging like a pendulum amidst uncertainties in the global market while covid-19 worries persist in China, triggering demand fears. American benchmark West Texas Intermediate (WTI), trading at $83.52 per barrel at the same time, gained 0.70% after the previous session closed at $82.94 a barrel.

Expectations of a rough winter and a global fuel shortage are pushing oil prices higher. READ: Oil Prices Inch Higher as China Eases Lockdown

The Iran nuclear deal, which seems to have hit some problems, is contributing to supply concerns. The EU’s foreign policy chief Josep Borrell said Tuesday that he does not expect a breakthrough in reviving the Iran nuclear deal this week.

Raising supply concerns, data released by the Energy Information Administration (EIA) on Wednesday showed that US commercial crude oil inventories increased by 1.1 million barrels during the week ending Sept. 16 to 430.8 million barrels, against the market expectation of a rise of around 2.32 million barrels.

Meanwhile, the rise in the US dollar limits oil price rises, making US-indexed crude oil more expensive for buyers using other currencies.

# Oil Prices Inch Higher over Supply Concerns#