Oil prices drop, ending nine-day winning streak

Price action

• West Texas Intermediate crude for October delivery fell 45 cents, or 0.5%, to $87.09 a barrel on the New York Mercantile Exchange.
• The U.S. benchmark's nine-day winning streak is its longest since 2019.
• November Brent crude, the global benchmark, fell 35 cents, or 0.4%, to $90.25 a barrel on ICE Futures Europe.

Market drivers

• Crude oil prices rallied after Saudi Arabia announced an extension of a production cut of 1 million barrels a day through the end of the year, with Russia also pledging to extend a supply cut.

• Analysts at Sevens Report Research stated that the extension of output cuts by Saudi Arabia and Russia is the main supporting element for the renewed oil rally.

• The Energy Information Administration will release its weekly petroleum inventory report on Thursday morning.

• Analysts expect the report to show supply declines of 5.6 million barrels for crude and 840,000 barrels for gasoline, while distillate inventories are expected to hold steady for the week.