Oil up during week ending Sept. 15 amid supply constraints

- Both benchmarks hit highest levels since November 2022 as investors fret over tightening supplies

Oil prices climbed by over 3% during the week ending Sept. 15 over tight global supply concerns and a positive demand outlook from China, the world's biggest oil importer.

International benchmark Brent crude traded at $94 per barrel at 1.42 p.m. (1042 GMT) on Friday, increasing by around 3.7% relative to the closing price of $90.65 a barrel on Friday last week.

The American benchmark West Texas Intermediate (WTI) gained while trading at $90.54 a barrel, a 3.46% increase over last Friday's session, which finished at $87.51 a barrel.

Both benchmarks hit their highest levels since November 2022 during the week as investors fretted about tightening supplies following Russia and Saudi Arabia's plans to limit output until the end of the year.

Oil prices spiked to a fresh 10-month high of $92.40 a barrel on Tuesday, bolstered by supply disruptions in Libya. Catastrophic flooding caused by Storm Daniel killed at least 5,300 people and compelled Libyan officials to close four oil terminals as a precaution.

OPEC published its monthly oil market report on the same day, supporting the upward demand trajectory. According to the report, ongoing global economic growth is forecast to drive oil demand, especially given the recovery in tourism, air travel and steady driving mobility.

The US Energy Information Administration (EIA) revised up the price of Brent crude for this year and next in light of the expected decline in global oil inventories, further supporting the narrative of high oil prices for the coming months.

The price of Brent crude will average $93 per barrel in the fourth quarter of this year, the agency said.

Data indicating an increase in oil demand and consumption in China, supported by the economic recovery, pushed prices higher on Friday.

Better-than-expected economic data in China and reports of record oil consumption supported the view that demand will continue to increase in the world's biggest crude importer.

By Zeynep Beyza Kilic

Anadolu Agency

energy@aa.com.tr