Oil prices are poised for their most extended streak of gains in months due to supply worries.
West Texas Intermediate (WTI) has surpassed $82 a barrel, posting its sixth day of consecutive gains.
Currently, WTI, North America’s primary oil benchmark, is on course to log its longest series of gains since the beginning of the year.
This upward trend is in the wake of a notable decrease in US crude oil stocks, pointing to an increasingly tight global supply.
Last week, US stockpiles dropped by 10.6 million barrels, hitting their lowest since December.
The unprecedented demand has further pushed oil prices up, with production reductions risking even tighter global supplies.
Russia has finalized a deal with the OPEC+ oil cartel to prolong the reduction in crude production into October. In addition, Moscow has already set its sights on decreasing production by 300,000 barrels daily for September.
“Terms have been agreed upon; details will be revealed next week,” remarked Alexander Nova, Russia’s Deputy Prime Minister, this past Thursday.
Simultaneously, market speculations suggest Saudi Arabia’s intent to uphold its voluntary cutback of 1 million barrels daily into the next month.
