Up Strongly This Week, WTI Outpacing Brent

Oil has continued to track higher in the first part of Friday trade. Brent sits above $87/bbl in recent dealings, close to session highs. We are ~0.20% firmer for the session, following Thursday's +1.16% gain. Brent is comfortably up for the week at this stage, +3%. WTI is just above $83.80/bbl in recent dealings, which puts the benchmark nearly 5% higher for the week at this stage.

• The prospect of tighter supply has aided the latest move higher in oil. Russia stated it has agreed with OPEC+ partners to further cut oil exports, with more details set to be announced next week. At the same time Saudi Arabia is expected to a extend a 1-million-barrel supply cut into October (this was first introduced in July).
• This comes amid signs of tightening US supply, given declining inventory levels.
• Better China related asset sentiment has also likely helped crude. Efforts to improve housing demand are in focus, whilst manufacturing PMIs in China have beaten expectations over the past two days.
• For Brent, early August highs of $88.10/bbl are within sight, while recent lows rest just under $82/bbl. For WTI August 10 highs around $85/bbl are the topside focus.