Oil prices advanced on Tuesday, extending gains from the past three weeks on signs that supply is getting squeezed while demand holds up.
Brent crude, the international standard, advanced 0.9% to $95.26 a barrel. West Texas Intermediate, the U.S. benchmark, climbed 1.5% to $92.86 a barrel. Prices are up some 25% over the past three months.
Prices are already the highest in almost a year after Russia and Saudi Arabia said they would extend voluntary output cuts through the fourth quarter.
Chevron
(ticker: CVX) Chief Executive Officer Mike Wirth said Monday that prices will probably reach $100 in an interview with Bloomberg television.
The resurgence of oil prices could be a headache for the Federal Reserve, which has aggressively raised interest rates to bring down inflation but is expected to pause at its meeting this week.
A sluggish economic outlook in Europe and China could weigh on oil prices over the next few months, since slower growth means less demand for energy. For now, though, supply worries are overriding those concerns.
Write to Brian Swint at [email protected]
Read the full article here