WTI crude futures rebounded to trade higher around $87.4 a barrel on Friday, the highest since early November, and booking a near 2% gain for the week due to expectations of tight supplies. Saudi Arabia announced it would extend its voluntary output cut of 1 million barrels per day through the end of December. Also, Russia decided to reduce its oil exports by 300,000 bpd until the end of the year. Adding to woes, EIA data showed that US crude inventories declined by 6.3 million barrels last week, way higher than market expectations for a 2.1 million barrel draw. Still, concerns persist on the demand side, due to China’s flagging economy, and renewed fears that further interest rate hikes from the Fed could exert downward pressure on energy consumption.
