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Oil prices edge higher; OPEC supply, tighter sanctions talk help

Oil prices have surged to nearly a three-month high due to a combination of shrinking U.S. crude inventories and reduced supply from OPEC. According to the U.S. Energy Information Administration (EIA), U.S. crude oil inventories fell by 2.5 million barrels last week, significantly more than the expected drawdown. This decline was influenced by a drop in imports and an increase in exports. Concurrently, OPEC's production has been curtailed due to ongoing voluntary cuts, particularly from Saudi Arabia, which has extended its 1 million barrel per day cut into August. These supply-side constraints have tightened the market, pushing Brent crude futures up to $83.65 a barrel and U.S. West Texas Intermediate (WTI) crude to $79.63 a barrel. Additionally, market sentiment has been buoyed by expectations of strong demand, especially from China, and a general optimism about global economic recovery.

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[ https://in.investing.com/news/commodities-news/oil-prices-rise-to-near-3mth-high-as-us-inventories-shrink-opec-supply-drops-4602634 ]