Oil prices fell globally on Wednesday as investors booked profits after three consecutive sessions of gains. The decline was in response to Saudi Arabia and Russia extending their production cuts.
Brent crude futures dropped by 66 cents and settled at $93.68 per barrel.
During the session, the oil price rose to its highest level since November, reaching $95.96 a barrel.
Upon settlement, US West Texas Intermediate crude futures fell 49 cents to $90.71 per barrel.
Earlier in the session, it reached $93.74 a barrel, the highest level since November.
The investment bank UBS noted that it has become profitable. However, UBS strategists predict that Brent crude will trade within the range of $90-100 per barrel.
In the upcoming months, the target for oil prices is to reach $95 per barrel by the end of this year. The concerns about the oil supplies have risen, as Saudi Arabia and Russia have extended their combined production cuts of 1.3 million barrels per day until the end of this year.
The US Energy Information Administration reported on Monday that oil production in one of the largest shale oil producing regions in the US is expected to decline to 9.393 million barrels per day in October. This will mark the third consecutive monthly decline and the lowest level since May 2023.
Yesterday, the Energy Minister of Saudi Arabia, Prince Abdulaziz bin Salman, spoke in defense of OPEC+’s decision to cut oil supplies in the market. He emphasized that international energy markets need regulation to reduce volatility. The minister also expressed concerns about the uncertain demand from China, the growth in Europe, and the effectiveness of central bank measures to tackle inflation.
