New Delhi: International crude oil prices continued to trade higher on Monday amid concerns over the supply situation due to the ongoing production cuts by Saudi Arabia and Russia.
Analysts said traders would be keenly watching the US Federal Reserve’s Federal Open Market Committee meeting scheduled for this week.
At 1:30 p.m., the November Brent contract was trading at $94.26 a barrel on the Intercontinental Exchange, up 0.35% from its previous close. The October West Texas Intermediate (WTI) contract on NYMEX was trading at $91.21 per barrel, up 0.48% from its previous close.
Ravindra Rao, Head of Commodity Research at Kotak Securities, said crude futures witnessed the third consecutive weekly gain as the extension of supply curbs by Saudi Arabia and Russia tightened the oil market outlook.
He also noted that while the OPEC report showed that global oil markets face a supply deficit of 3.3 mbpd in the next quarter, potentially the largest in more than a decade, the International Energy Agency (IEA) projected that demand will outpace supply by an average of 1.2 million barrels per day (mpbd) in the second half of the year.