Oil heads for third week of rise

Oil continues to rise for a third week as supply cuts hit Brent crude is set to rise for a third week in a row as supply cuts from Saudi Arabia and Russia hit a new high of $94. The active Brent crude contract, which rose 2 percent on Thursday, rose above $94. The International Energy Agency and the Organization of the Petroleum Exporting Countries warned this week that the market would be in deficit by the end of the year, helping crude rise more than 4 percent since last Friday’s close. Demand was also supported by increasing signs that the U.S. could avoid a recession, while data from China on Friday beat economists’ forecasts, suggesting that the worst of the recession is behind us. The idea that the U.S. economy could avoid a recession and the latest economic data from China suggest that tightness in the oil market could increase. “Given the OPEC+ cuts, the oil market should consider the possibility that Brent could rise to $100,” said Vivek Dhar, Research Director at the Commonwealth Bank of Australia.