West Texas Intermediate (WTI) barrels for September gained 1.87% to $77.07, a peak since late April at the close.
The price of a barrel of North Sea Brent for September delivery, meanwhile, rose 1.79% to $81.07 in London.
“The market is focused on OPEC+ production cuts,” OPEC and its allies, said Andy Lipow of Lipow Oil Associates.
Saudi Arabia announced in June a reduction of one million barrels a day from its production in July, before signaling that it would do the same in August; while Russia promised to reduce its exports by 500,000 barrels per day in August.
“We can expect the offer to contract further in August, with a further decline in Russian exports,” Commerzbank analysts anticipated in a note.
The EIA estimates that global inventories of Petroleum they will decline over the next five quarters, meaning demand will outstrip supply until the end of 2024, according to a monthly report released Tuesday.
“We expect production cuts and increased demand to push prices higher,” says the EIA, which forecasts Brent crude to hit $81 a barrel by the end of the year, and $84 next year.
“There are fewer barrels on the market,” Mizuho’s Robert Yawger said, referring to reduced Saudi production and Russian exports, the first in July and the second in August.
FOUNTAIN: With information from AFP and AP
