Oil prices rise ahead of US inventory data

Oil drilling rigs

Oil edged up today, Sept. 5, supported by the American Petroleum Institute's (API) estimates of US oil inventories, which indicated strong demand for black gold in the world's largest economies.

Reports that OPEC+ is considering delaying its plan to increase production, which is scheduled for implementation early next month.

Brent crude was trading up 0.34% at $72.95 a barrel at 08:25 am Makkah time. WTI crude rose 0.38% to $69.46 a barrel.

Crude oil inventories in the US fell by 7.4 million barrels during the week ended Aug. 30, API data showed. Gasoline and distillate inventories falling by 300,000 barrels and 400,000 barrels, respectively, during the same period.

If these estimates are correct, this means that US demand for oil continues is strong. Investors are awaiting the release of official data from the Energy Information Administration today.

Meanwhile, Citigroup said in a report yesterday that the average price of oil could fall to $60 per barrel in 2025 if OPEC+ does not reduce its production from current levels, due to a decline in demand and an increase in supplies from other countries outside the alliance.