Oil closes higher, Brent exceeds $94

Oil drilling rigs

Oil prices closed higher today, Sept. 18, amid expectations of lower supply and higher demand during the last quarter of this year, as OPEC+ major producers extended output cuts.

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman warned of uncertainty about Chinese demand, European growth, and central bank measures to address inflation, and defended OPEC+ cuts to oil supplies, Reuters reported.

Citigroup analysts said that although geopolitical risks may push oil prices above $100 for a short period, supplies from non-OPEC countries—including Canada, Brazil, Argentina, Guyana and Norway— mean that prices near $90 appear unlikely to be sustainable.

The US Treasury Secretary said that she did not see any signs that the US economy was slowing, but she warned that Congress' failure to pass legislation to keep the government running threatens to slow the momentum in the economy.

Janet Yellen said in an interview with CNBC that the United States is closely monitoring oil prices, noting that US President Joe Biden wants to ensure that gasoline remains affordable.

During the first 13 days of September, Russian oil companies exported about 63,000 tons of diesel per day, a 31% decrease from the average during the first 30 days of August, Bloomberg reported, citing sources.

Russian ESPO crude for October delivery in China rose, exceeding the standard Brent price by 50 cents, for the first time since Western countries decided to apply a price ceiling on Russian oil, according to reports.

Meanwhile, Brent crude futures for November delivery rose 0.55%, or 50 cents, to close at $94.43 a barrel.

WTI crude for November delivery was up 0.6%, or 56 cents, to $90.58 per barrel.