Oil extends gains after US exports jump amid tightening supply

Oil rose for a third session after a government report showed the US shipped a record amount of crude and refined products overseas as energy-starved economies scramble for supplies.

West Texas Intermediate edged above $95 a barrel after closing 1.2 per cent higher on Wednesday. The volume of crude and products such as diesel exported from the US last week was the highest in data going back to February 1991, according to the Energy Information Administration.

Crude is heading for a weekly gain as signs of a tightening supply outlook offset concerns over an economic slowdown. Exports from Kazakhstan may be disrupted for months due to damage at a terminal, while Saudi Arabia has flagged potential production cuts by OPEC+ to calm a volatile market. Other members of the group including Iraq and Kuwait expressed support.

Investors are also watching for progress on the revival of a nuclear deal with Iran, which could lead to a surge in energy flows from the OPEC producer. The Gulf nation said it’s reviewing the Biden administration’s response to an EU-drafted plan to rescue the 2015 accord, including US comments on amendments suggested by Tehran.

Iran will seek to fill the void left by Russia in Europe, and try to win back customers in countries like Greece, Italy, Spain and Turkey if a deal is secured, according to people familiar with the matter.