Oil prices edge higher on supply woes as Saudi, Russia extend output cuts

investing.com:

By Arathy Somasekhar

(Reuters) — Oil prices ticked up on Thursday, as markets worried about a supply shortage after Saudi Arabia and Russia extended their voluntary supply cuts to the end of the year.

Brent crude futures rose by 17 cents, or 0.2%, to $90.21 a barrel at 00:08 GMT. It crossed the $90 mark for the first time since November on Tuesday in the sixth straight day of gains.

U.S. West Texas Intermediate crude (WTI) futures gained 23 cents, or 0.3%, to $86.92 a barrel after touching a 10-month high in the previous session.

Near-term prices for oil traded on Tuesday at their steepest premium since November to later-dated prices, reflecting concern about tight near-term supplies.

Saudi Arabia will extend its voluntary oil output cut of 1 million barrels per day (bpd) for another three months until the end of December 2023, state news agency SPA said on Tuesday, citing an energy ministry official.

Russia extended its voluntary decision to reduce its oil exports by 300,000 bpd to the end of this year, Deputy Prime Minister Alexander Novak said in a statement on Tuesday.

The Saudi and Russian voluntary cuts are on top of the April cut agreed by several OPEC+ producers, which extends to the end of 2024.

Both countries will review the cut decisions monthly to consider deepening cuts or raising output depending on market conditions, SPA and Novak said.