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09 August 2023

Oil Hits New Highs on US Fuel Demand, Tighter Supply

Surging Demand for US Fuel and Production Cuts Propel Oil Prices to New Heights

On Wednesday, oil prices surged to fresh heights as the global Brent benchmark reached its peak since January, driven by a substantial reduction in U.S. fuel inventories and coordinated output reductions by Saudi Arabia and Russia. These factors managed to counterbalance worries over sluggish demand from China.

The day concluded with Brent crude marking a substantial increase of $1.38, equivalent to 1.6%, ultimately reaching $87.55 per barrel—its highest level since January 27.

Meanwhile, West Texas Intermediate crude (WTI) saw a notable uptick of $1.48, or 1.8%, culminating at $84.40, its most elevated point since November 2022.