At 12:08 GMT, the price of U.S. West Texas Intermediate crude (WTI) had increased $1.31, or 1.43%, to $93.02 per barrel.
Prior to the contract’s expiration later in the day, front-month Brent November futures were up 88 cents, or 0.92%, at $96.26 per barrel. At $94.07 per barrel, the more liquid Brent December contract was up 97 cents, or 1.04%.
With storage at Cushing, Oklahoma, the delivery point for U.S. oil futures, already at its lowest level since July 2022, a backdrop of constrained supply in the U.S. supported prices further.
According to Commerzbank analyst Carsten Fritsch, “any further decline would threaten to bring them down to a critical level, which could make further withdrawals difficult.”
As the week-long Golden Week vacation got underway on Friday, China’s petroleum demand was expected to increase.
Chinese oil demand is being boosted by an increase in overseas travel over the Golden Week holiday, according to ANZ analysts’ client note.
Data from flying app Umetrip shows that the average number of daily flights booked is a fifth more than during Golden Week in 2019, prior to COVID, suggesting that domestic travel will also help to increase demand.
The most recent Eurostat flash report revealed that inflation in the eurozone dropped to a two-year low of 4.3% in September, signalling that the European Central Bank’s policy of gradual interest rate increases was having an impact.
If the present export restriction fails to lower domestic costs, Russia is considering implementing gasoline export limitations.
On Friday, the St. Petersburg International Mercantile Exchange (SPIMEX) saw a small decline in the exchange rates for Russian petrol and diesel.
According to a survey of 42 economists released by Reuters on Friday, Brent is expected to average $89.85 a barrel in the fourth quarter and $86.45 in 2024.
For the balance of this year, Saudi Arabia and Russia will control oil prices through production cuts, but macroeconomic headwinds may cap a rise to $100 per barrel, according to analysts.