Crude oil prices surged to a 10-month high Tuesday after the Orga🍨nization&nbs⛎p;of the Petroleum Exporting Countries (OPEC) and the 澳洲幸运5官方开奖结果体彩网:U.S. Energy Information Administ🍬ration (EIA) released reports predicting that surging demand and recent price gains could stick through the remainder of the year. The price for November deliveries of 澳洲幸运5官方开奖结果体彩网:Brent crude, the global benchmark, sꦇurg👍ed 2% to as high as $92.40 per barrel in Tuesday trading.

Tuesday's rally occurred after OPEC said in its monthly report that supply shortfalls could reduce global crude inventories by 3.3 million barrels a day in the fourth quarter. That would represent the biggest global deficit since 2007.

OPEC's report contributed to a market environment in which the price of Brent crude has gained close to 25% over the past three months, while the price 澳洲幸运5官方开奖结果体彩网:West Texas Intermediate (WTI) crude, the U.S. benchmark, surged over 29%. However, some analysts and a U.S. government report indicated prices may have reached their near-term🧸 peak.

Updated Forecasts

The EIA, in a separate monthly report, predicted consumption would outstrip production by just 230,000 barrels a day in the fourth quarter.

Nevertheless, the EIA said it expects Brent will average $93 per barrel in the fourth quarter,♎ up $7 from its forecast just one month ago, before easing to $87 per barrel by the s♏econd half of 2024.

The projections from both the EIA and OPEC reflect Saudi Arabia's announcement last week that it would extend its earlier oil production cut of 1 million barrels a day through the end of the year. The country previously had said the reduction would expire at the end of September.

In its report, OPEC announced its production increased in August by an average of 113,000 barrels a day to 2♏7.5 million barrels. Meanwhile, it left its overall global demand forecasts for 202♕3 and 2024 unchanged.

The EIA said its price forecast reflects an expected decline in U.S. gasoline consumption in 2024 to 8.7 million barrels per day, down 200,000 barrels from August's projection.

Rally's Last Legs?

Despite Tuesday's seemingly bullish forecasts, and the threat they may pose to moderating inflation, some analysts suggested a sluggish global economy could prevent oil prices from rising much further.

David Kelly, chief global strategist with J.P. Morgan Asset Management, said in a blog post Monday that "barring some further show, there should be limited upside to energy prices from here," particularly as the U.S. ramps up its oil production to record-high levels.

The EIA predicts total U.S. production will reach an average of 21.6 million barrels a day this year, and 22.2 million barrels per day i🦋n 2024.

Kelly noted that global economic output, as measured by composite purchasing managers data, reached its lowest level in seven months in August. Manufacturing has begun contracting globally, with China and Europe exhibiting weakness. In addition, he added that August data on retail sales and industrial production 澳洲幸运5官方开奖结果体彩网:due this week could "confirm a loss of momentum in the U.S."

"All of this should dampen the demand for oil and gas," he said, "as should longer-term investment in energy transition."