Oil extends gains on tighter supply outlook as OPEC+ holds production steady
Crude prices rose for a third straight session after OPEC+ opted to leave output quotas unchanged, defying expectations of a modest increase.
Oil prices extended their advance for a third consecutive session on Tuesday after OPEC+ opted to hold production quotas steady, wrong-footing traders who had positioned for a modest output increase.
Brent crude climbed toward $84 a barrel, its highest level in roughly six weeks, while US benchmark futures posted similar gains as the group's decision tightened the near-term supply outlook.
The move was reinforced by a US government report showing crude inventories fell more than analysts had forecast, adding to signs of firmer demand heading into the autumn driving season.
Attention now turns to upcoming demand indicators out of China, the world's largest crude importer, which traders say will be key to determining whether the current rally has further room to run.
Key Takeaways
- Brent crude climbed toward $84 a barrel, its highest level in six weeks.
- OPEC+ left production quotas unchanged, defying calls for a modest hike.
- US crude inventories also fell more than analysts had forecast.
- Traders now watch upcoming demand data out of China for the next cue.
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