2023.09.1309:59:00UTC+00Oil Prices Climb On Supply Concerns

Oil prices rose on Wednesday to trade near 10-month highs, drawing support from upbeat outlooks published by OPEC and the EIA.

Benchmark Brent crude futures climbed 0.6 percent to $92.59 a barrel, while WTI crude futures were up 0.6 percent at $89.38.

The monthly report from the Organization of the Petroleum Exporting Countries (OPEC) showed the oil market is going to be a lot tighter than initially thought amid robust demand and lower production.

OPEC now expects a 3.3 million barrels a day deficit over the next 3 months, which is one million more bpd of a deficit than some energy traders were anticipating.

Separately, new projections from the International Energy Agency suggested that global oil demand will peak this decade.

Oil cuts by OPEC+ allies Saudi Arabia and Russia will cause a "significant" global supply shortfall through the end of the year, raising the risk of further market volatility, the International Energy Agency said.

"From September onwards, the loss of OPEC+ production, led by Saudi Arabia, will drive a significant supply shortfall through the fourth quarter," the IEA said.

More signs of global supply tightness due to storm-related output disruption in Libya also supported prices and overshadowed data from the American Petroleum Institute showing that U.S. crude inventories rose 1.2 million barrels last week - marking the first such climb in five weeks.