The benchmark price for US crude oil, Western Texas Intermediate (WTI), was around $90.90 on Tuesday. Due to Saudi Arabia’s and Russia’s anticipated limited supply, WTI prices are on the rise. But the potential increase in WTI prices may be constrained by worries about a slowdown in China’s economy.

The current increase in WTI prices is supported by Saudi Arabia’s and Russia’s reductions in oil production. Despite this, the two biggest oil exporters in the world agreed to extend production cuts that would last until the end of 2023. Saudi Arabia’s oil production will reach closer to 1.3 million barrels per day by the end of 2023. Additionally, the International Energy Agency (IEA) issued a warning earlier this week that the fourth-quarter oil market shortfalls would deepen due to the summertime oil production cuts announced by Saudi Arabia and Russia.

Prince Abdulaziz bin Salman, the energy minister for Saudi Arabia, said on Monday that OPEC and its partners are trying to maintain stable oil markets and increase global energy security without aiming for a particular crude price level. He did add, though, that one of the major factors influencing the price of crude is the uncertainty surrounding China’s consumption.

Oil traders will be watching the Federal Reserve’s (Fed) interest rate decision on Wednesday with bated breath in the following days. The market expects the Federal Reserve (Fed) to maintain interest rates constant at its policy meeting on Wednesday, while leaving the door open for another rate hike. The API and IEA will also provide data on Crude Oil Stocks for the week ending September 15.

The preliminary September S&P Global PMI figures for the United States are due on Friday. These events could have a significant impact on the price of WTI stated in USD. The data will be used as a guidance for oil traders looking for trading opportunities near the WTI levels.

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