RIYADH: Oil prices rose after witnessing a mixed performance in early Asian trade on Thursday as investors balanced caution over tightening supply against concerns that a global slowdown could curb demand.
Brent crude oil futures rose $1 to $91.03 a barrel at 3:00 p.m Saudi time while US WTI crude prices extended gains up by $2 to $87.55 a barrel.
A looming EU ban on Russian crude and oil products boosted oil prices.
Oil prices have also been boosted by the output cut from the Organization of the Petroleum Exporting Countries and other producers including Russia, known as OPEC+.
OPEC+ country members expected to cut output below recent decision
The OPEC+ agreed on a production cut of 2 million barrels per day in early October.
However, analysts expect a smaller decline in actual output of about 1 million barrels per day due to under-production in countries such as Iran, Venezuela and Nigeria.
US taking steps to dampen high gasoline prices
US President Joe Biden announced a plan on Wednesday to sell off the rest of his release from the nation's emergency oil reserve by year's end, or 15 million barrels of oil, and begin refilling the stockpile.
Biden is trying through this decision to dampen high gasoline prices ahead of the midterm elections on Nov. 8.
Global demand for fuel remains uncertain
US economic activity expanded modestly in recent weeks, although it was flat in some regions and declined in a couple of others, the Federal Reserve said on Wednesday in a report that showed firms growing more pessimistic about the outlook.
China has also continued with strict COVID-19 curbs this year, hurting business and economic activity in the world's largest crude importer.
Global recession concerns and the potential for another aggressive US rate hike were clouding the outlook for oil prices, said CMC Markets analyst Leon Li.
(With inputs from Reuters)
