Oil closes higher; Brent exceeds $92

Oil drilling rigs

Oil edged up today, Sept. 12, hitting the highest close in nearly 10 months, amid forecast of weaker supply and a decline in global inventories.

Brent crude futures for November delivery increased by 1.5%, or $1.42, to $92.06 per barrel, after touching $92.38 per barrel during the session—the highest level since Nov. 17, 2022.

West Texas Intermediate (WTI) crude contracts for October delivery rose by 1.8%, or $1.55, to $88.84 per barrel—highest level since Nov. 11, 2022.

The Organization of the Petroleum Exporting Countries (OPEC) maintained its expectations for growth in global oil demand in 2023 and 2024, noting that the performance of major economies is better than expected despite the headwinds.

Its monthly report issued on today showed that global demand for oil will rise by 2.25 million barrels per day in 2024, compared to a growth of 2.44 million barrels per day in 2023. Both forecasts were in line with last month.

The report showed a decrease in oil inventories in OECD countries by 7.9 million barrels on a monthly basis, to record 2.77 billion barrels in July.

Meanwhile, the US Energy Information Administration expects global oil inventories to decline by 600,000 barrels per day during the current quarter and 200,000 barrels per day during the fourth quarter, under pressure from OPEC+ reduction in supplies.

Oil's gains came today amid fears of supply disruption as Hurricane Daniel wreaked havoc in Libya, causing at least 2,000 deaths.