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Oil futures lost ground early Thursday, threating to snap a nine-day winning streak for the U.S. crude benchmark amid a rally that has taken prices to 2023 highs.
Price action
-
West Texas Intermediate crude for October delivery
CL00,
-0.26% CLV23,
-0.26%
fell 45 cents, or 0.5%, to $87.09 a barrel on the New York Mercantile Exchange, after ending the previous session at its highest since Nov. 11. The U.S. benchmark’s nine-day winning streak is its longest since 2019. -
November Brent crude
BRN00,
-0.31% BRNX23,
-0.31% ,
the global benchmark, fell 35 cents, or 0.4%, to $90.25 a barrel on ICE Futures Europe. It rose for a seventh straight day Wednesday, logging its highest close since Nov. 16.
Market drivers
A rally for crude oil accelerated after Saudi Arabia announced earlier this week it would extend a production cut of 1 million barrels a day through the end of the year, with Russia also pledging to extend a supply cut.
“Oil has been the main focus of the commodity space since futures made new [year-to-date] highs in August, turning the technical outlook to bullish from previously being range-bound between the upper $60s and low $80s for all of 2023,” wrote analysts at Sevens Report Research, in a note.
“The extension of output cuts by Saudi Arabia and Russia remain the main supporting element for the renewed oil rally right now,” they wrote.
The Energy Information Administration will release its weekly petroleum inventory report Thursday morning.
On average for the week ended Sept. 1, analysts expect the report to show supply declines of 5.6 million barrels for crude and 840,000 barrels for gasoline, while distillate inventories are seen as holding steady for the week, according to a survey conducted by S&P Global Commodity Insights.
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