Brent oil climbed above US$90 a barrel and was on track for a small weekly gain after supply curbs from OPEC+ leaders Saudi Arabia and Russia were extended for the rest of the year.

The global benchmark is trading near its highest level this year. Russia plans to reduce diesel exports from its key western ports by a quarter this month as a result of seasonal refinery maintenance and plans to keep more supplies at home. A rise in diesel futures outpaced gains in crude. 

Oil remains higher this quarter as the OPEC+ supply cuts boosted prices, with underlying metrics including key timespreads signaling a tighter market. Still, some banks remain cautious, with JPMorgan Chase & Co. analysts including Natahsa Kaneva saying crude is unlikely to see US$100 a barrel this year as the demand outlook is challenging. With OPEC+ decisions now known, the outlook will shift to how central banks will continue to combat inflation.

“Oil's rally deserves all the plaudits of the impressive type but faces some intriguing times,” said John Evans, an analyst at brokerage PVM Oil Associates Ltd. “How the next two week's central banks' decisions will affect progress is about to keep oil on tenterhooks for some time.”

Prices:

• WTI for October delivery dipped 0.6 per cent to US$87.39 a barrel at 11:15 a.m. in London.
• The US benchmark is 2.1 per cent higher this week following a 7.2 per cent gain in the prior five-day span.
• Brent for November settlement was 0.7 per cent lower at US$90.52 a barrel.