Oil Holds Longest Run of Gains Since January on More OPEC+ Cuts

Oil held its longest streak of gains since January, buoyed by risk-on sentiment and news that Russia had agreed on further OPEC+ cuts.

(Bloomberg) — Oil held its longest streak of gains since January, buoyed by risk-on sentiment and news that Russia had agreed on further OPEC+ cuts.

Although thin summer liquidity has kept the commodity tethered to broader markets, tightening physical supplies are supporting prices, with West Texas Intermediate on track for a second monthly rise.

Russia’s announcement that it would further curb exports comes as US crude inventories have declined to the lowest since December. Brent’s prompt spread rose to the widest since March Thursday while WTI’s also increased.

Russia in Talks With OPEC+ on Extending Oil-Export Cuts (2)

Crude is about 3% higher year-to-date as major OPEC+ producers curtail supply, and the cartel is expected to roll those cuts into October. Yet recent headwinds to crude include lingering expectations that the Fed isn’t done tightening interest rates and slowed economic growth in China.

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