WTI crude futures extended early gains and rose past $83.1 per barrel on Thursday, advancing for the sixth straight session to approach levels last seen in November 2022, driven by expectations of tight supplies. Official PMI data showed that China’s manufacturing sector contracted for the fifth consecutive month in August, ramping up expectations that key OPEC+ nations will extend output cuts. Markets bet that Saudi Arabia should roll over its voluntary 1 million bpd cut for a third consecutive month into October, and Russia could also extend export restrictions. Tight supply was also present stateside, as data from the EIA showed that crude oil stocks in the US plummeted by 10.6 million barrels on the week to August 25th, the most in one month and sharply above market expectations of a 3.3 million draw. Still, a Reuters survey indicated that production from Iran rose to 3.1 million bpd in August, the highest since 2018, and offsetting the voluntary cuts from Saudi Arabia and Russia.
