WTI extends gains above $90.00 on crude production cuts by OPEC+

Western Texas Intermediate (WTI), the US crude oil benchmark extends gains on the second day, trading higher around $90.00 per barrel during the Asian session on Friday.

Crude oil prices are receiving upward support due to a constrained production outlook from Saudi Arabia and Russia. Market analysts are anticipating that prices of black gold will gradually rise into the $100 per barrel range in the upcoming months.

The combined supply cuts of 1.3 million barrels per day from Saudi Arabia and Russia have been extended until the end of the year 2023. Markets believe that this extension will worsen an expected 2 million barrels per day shortfall in global oil supplies.

The US Dollar Index (DXY) is currently trading at around 105.40, and this upward movement can be attributed in part to the positive performance of US Treasury yields. The yield on the 10-year US bond has improved to 4.50% at the time of this writing.

Market participants will likely monitor economic data releases, including the preliminary US S&P Global PMIs for September. These figures offer valuable insights into the economic conditions in the United States (US) and can help traders identify potential trading opportunities involving the US Dollar (USD).

Recent economic data from the US, released on Thursday, presented a mixed picture. Initially, it strengthened the Greenback, signaling a resilient labor market. However, it later experienced a correction.

US Initial Jobless Claims for the week ending on September 15 reported a figure of 201,000, marking a decrease from the previous reading of 221,000 and reaching the lowest level since January. This data was anticipated to be higher at 225,000.

The Philadelphia Fed Manufacturing Survey declined to a reading of 13.5 in September, which was below expectations, as the market had anticipated a decrease of 0.7 from the previous positive reading of 12.

Regarding Existing Home Sales (MoM), August saw a decrease to 4.04 million from the previous figure of 4.07 million. Expectations were for an increase to 4.10 million.

As widely anticipated in the market, the Federal Reserve (Fed) chose to maintain interest rates within the 5.25-5.50% range during its Wednesday meeting. Fed Chairman Jerome Powell, in a subsequent press conference, reiterated the Fed's commitment to achieving a 2% inflation target. The policymaker also mentioned that the Fed is prepared to raise rates if necessary.