Oil is on pace for a monthly gain of 10% in October as global consumption outpaces supply and stockpiles dwindle.
West Texas Intermediate (WTI) crude oil was little changed after a volatile week that saw prices register a seven-year high above $85 U.S. per barrel on Monday (October 25).
World oil inventories will decline by an average of 1.1 million barrels a day this quarter, according to the Organization of Petroleum Exporting Countries and its allies (OPEC+). The producer group, which has been resisting pressure from oil users to raise supply at a faster clip, meets next week to assess production policy.
Oil has been one of the standout performers among commodities this year as a gas-centered energy crunch has buoyed demand for petroleum products. OPEC+ has argued that cautious monthly supply increases of 400,000 barrels a day are appropriate as risks remain.
However, diplomatic pressure is growing, after a top U.S. official called on oil and gas producers to boost output if they can, to help ease the current tightness.
WTI crude oil for December delivery slipped five cents to $82.76 U.S. a barrel while Brent crude oil contracts for December settlement rose seven cents to $84.39 U.S.
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