Oil market on track for third consecutive week of gains amid supply restrictions

The oil market is headed for a third straight week of gains, bolstered by supply constraints from leading oil producers Saudi Arabia and Russia. The West Texas Intermediate (WTI) benchmark has demonstrated a consistent upward trend, crossing the $90 per barrel mark on Thursday, a high not observed since November of the previous year.

Earlier this week, both the International Energy Agency (IEA) and the Organization of Petroleum Exporting Countries (OPEC) expressed concerns over a potential market deficit that could continue until the end of the year. These warnings have played a significant role in driving the recent surge in oil prices, with crude registering a 3.6% rise since last Friday’s close.

The tightening of the oil market can be attributed largely to the supply cuts implemented by Saudi Arabia and Russia, two of the world’s top oil producers. This situation has resulted in a steady increase in oil prices, with WTI reaching notable highs. Market forecasts from prominent global agencies suggest a continuing supply deficit, further propelling this upward trajectory in oil prices.

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