Oil rises amid supply fears

Oil drilling rigs

Oil prices rose today, Sept. 8, after falling more than 5% in the previous session as investors assessed supply shortage ahead of the release of US inventory data.

International benchmark Brent crude was trading up 0.65% at $88.61 a barrel, at 9:07 am Makkah time.

West Texas Intermediate (WTI) crude rose 0.84% to $82.66 a barrel.

In a report released on Sept. 7, the US Energy Information Administration (EIA) raised its forecast for oil prices, expecting Brent crude to reach $96.91 a barrel in 2023, an increase of 1.9% from previous estimates. WTI crude is expected to reach $90.01 a barrel, an increase of 2% from the previous expectations.

Meanwhile, the American Petroleum Institute data showed that crude oil inventories rose by 3.6 million barrels in the week ended Sept. 2. Distillate stocks rose by 1.8 million barrels, while gasoline stocks fell by 836,000 barrels.

The official inventory data from the EIA is scheduled for later today, with expectations of a decrease in crude oil inventories by two million barrels.