January 29, 2023
Business

After falling to nearly a 6-month low, oil prices are beginning to rise due to supply concerns

After falling to nearly a 6-month low, oil prices are beginning to rise due to supply concerns

On Thursday, oil prices increased as supply concerns led to a recovery from multi-month lows reached the previous day as a result of sluggish gasoline demand indicated by US statistics.

West Texas Intermediate (WTI) crude futures were recently up 21 cents, a 0.2 percent gain, at $90.87, while Brent crude futures increased 10 cents, or 0.1 percent, to reach $96.88 a barrel at 0653 GMT.

Following US data that showed crude and gasoline stockpiles unexpectedly increased last week and as OPEC+ agreed to raise its oil output target by 100,000 barrels per day (bpd), or roughly 0.1 percent of global oil demand, both benchmarks fell to their weakest levels since February in the previous session.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, which includes Russia, are referred to as OPEC+. OPEC+ has been increasing production in the past but has had difficulty meeting targets because the majority of its members have already reached their maximum output capacity.

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