Oil prices hit new 2023 high as supply squeeze tightens
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The news: Oil prices have hit new yearly highs as global markets face a 3 million barrel a day shortfall next quarter, OPEC data shows.
The numbers: Brent Crude Oil futures have reached USD92 and West Texas Intermediate is trading above USD89, settling at their highest levels since November 2022. World inventories have fallen sharply this quarter and could be set for the biggest inventory drawdown since 2007, according to OPEC forecasts. The figures showed crude stockpiles in developed economies were currently 114 million barrels below 2015 to 2019 averages.
The context: Saudi Arabia and Russia's decision to extend oil supply reductions jolted oil prices last week and will serve as an additional hurdle to economies struggling to contain inflation. US CPI figures for August will be released at 10:30pm AEST today, but the recent jumps in oil price won't begin to be recorded until September figures are released next month.
The sources: Bloomberg, OPEC Report
