Oil prices spike on tight supplies, OPEC upbeat on demand Oil prices rose about 1% on Tuesday, boosted by a tighter supply outlook, and as producer group OPEC said major economies were faring better than expected despite rising interest rates.
November Brent crude futures rose 85 cents, or 0.9%, to $91.49 a barrel at 1219 GMT, while U.S. West Texas Intermediate crude futures for October firmed by $1.02, or 1.2%, to $88.31.
Brent breached $90 a barrel last week for the first time in 10 months after Saudi Arabia and Russia announced they would extend voluntary supply cuts of a combined 1.3 million barrels per day (bpd) until the end of the year.
"There is little doubt that the oil industry feels a collective rally risk with a perception of, and actual tightening in parts of oil flow," PVM Oil analyst John Evans said.
The Organization of the Petroleum Exporting Countries (OPEC) on Tuesday stuck to an upbeat demand growth forecast for this year and next, citing resilient economic growth despite rising interest rates.
World oil demand will rise by 2.25 million bpd in 2024, compared with growth of 2.44 million bpd in 2023, OPEC said in its monthly report. Both forecasts were unchanged from last month.
The International Energy Agency releases its forecasts on Wednesday.
In Libya, a deadly storm led the OPEC member to shut four of its eastern oil export terminals on Saturday.
Meanwhile, August U.S. consumer price index data, due for release on Wednesday, is expected to give some hints on the direction of interest rates from the world's biggest oil consumer the United States.
The Federal Reserve is widely expected to leave interest rates unchanged at a policy meeting next week, though views are split over whether the Fed will hike or pause again in November.
The European Central Bank will announce its interest rate decision on Thursday. The European Commission on Monday forecast the euro zone to grow more slowly than previously expected in 2023 and 2024.
Investors also awaited industry data on U.S. crude stocks due at 2030 GMT on Tuesday. Crude inventories were expected to have fallen by about 2 million barrels in the week to Sept. 8, a preliminary Reuters poll showed on Monday.