Oil advances as supply concerns surpass demand and rate hike woes

Oil prices have advanced slightly amid higher volatile trading on Monday, as worries of tight supplies outweighed fears of global economic slowdown and likely large increases to interest rates.

Brent crude for November rose 65 cents, or 0.7%, to $90.6 a barrel, while US West Texas Intermediate (WTI) for October was up 62 cents to $85.37 per barrel, or 0.7% percent.

The Organization of Petroleum Exporting Countries and allies led by Russia, known as OPEC+, fell short of its oil production target by 3.583 million barrels per day (bpd) in August, an internal document showed. In July, OPEC+ missed its target by 2.892 million bpd.

The surveys of OPEC+ production being so far below their quotas for August has the market feeling that they are unable to increase their production if the market so demands.

It is noteworthy that the British public holiday for the funeral of Queen Elizabeth limited trade volume during London hours on Monday.