Crude Oil Prices Move Higher Off Supply Concerns
September 1, 2023
The energy markets are closed on Monday for the Labor Day Holiday. There are no forward contracts available on Monday September 4, 2023.
Energy price were higher in yesterday’s trading driven mainly by the news that Saudi Arabia is expected to extend the voluntary oil output cuts of 1,000,000 bpd through October and possibly the end of the end of the year.
Russia’s Prime minister said his country has agreed with OPEC+ partners to reduce the export levels of oil and will announce the new parameters of the deal next week. Reuters reports that Russia has seen some fuel shortages internally within the country. The promised cut may just be to help supply themselves but if the market sees lower exports from Russia, it should offer support to prices.
Crude oil prices have moved higher since late June with low inventories being the main supporting factor. As barrels were released from the SPR to try and ease prices we are not faced with low inventories. Will prices continue to go higher due to the concerns about current inventory levels or will the market get some relief from the upcoming refinery maintenance which should reduce crude input into refineries. We will see how things progress. The $80 dollar level has offered good support to prices and in the last week crude has taken a pop higher, but this market will need something to continue to generate buying interest.