2023.05.2409:58:00UTC+00Oil Prices Rally For Third Day On Concerns Over Tightening Supply

Oil prices rose about 2 percent on Wednesday to extend gains from the previous session on concerns over tightening supply and after a warning from Saudi Arabia's energy minister that oil prices may not continue to decline.

Benchmark Brent crude futures jumped 1.9 percent to $78.28 a barrel, while WTI crude futures were up 2.1 percent at $74.42.

Analysts expect oil prices to stay elevated amid supply concerns after reports emerged that OPEC and allies might consider another cut in production at a meeting on June 4.

The North American oil supply has already been squeezed by Canadian wildfires and there are expectations of a surge in road trips in the U.S. beginning with next Monday's Memorial Day holiday.

Additionally, Saudi Arabia issued a warning to short sellers, leading a rally in oil prices for the third straight session.

Meanwhile, U.S. crude oil inventories shrank at their fastest pace in nearly six months over the past week, data from the American Petroleum Institute showed.