Oil prices faced a downward trend on the 11th of September due to a resilient US dollar and concerns over China’s economic outlook.
Despite this, Brent crude managed to stay above $90 per barrel, buoyed by tightened supplies following Saudi Arabia and Russia’s extension of supply cuts.
Brent crude dipped by 10 cents (0.1%), reaching $90.55 per barrel, while US West Texas Intermediate crude dropped by 42 cents (0.5%) to $87.09 per barrel.
ANZ analysts explained that concerns about Chinese economic growth weighed on sentiment across commodities, and added that a stronger US dollar further dampened investor enthusiasm, noting the greenback’s eight-week consecutive rise.
In recent weeks, oil prices experienced consecutive gains, with Brent settling at its highest point since November.
This surge followed the announcement by Saudi Arabia and Russia that they would prolong voluntary supply cuts, totaling 1.3 million barrels per day, until year-end.
This week, the International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC) are set to release their monthly reports.
Analysts at ANZ believe that any indication of robust demand in these reports will likely drive oil prices higher.
In the United States, producers added an oil rig for the first time since June, according to Baker Hughes’ weekly report.
Nevertheless, the overall count remains 17 percent below last year’s levels, down by 127 rigs.
IG analyst Tony Sycamore suggested that WTI oil may establish a new higher range, likely between $83 and $93.50 in the coming weeks.