Oil Prices Extend Multi-Month Highs on Supply Concerns

Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, on Jan. 21, 2019. Agustin Marcarian/Reuters

LONDON—Oil prices extended 10-month highs on Wednesday, driven by expectations that crude supply will remain tight for the rest of the year.

Saudi Arabia and Russia’s extension of 1.3 million barrels per day (bpd) of crude oil production cuts to the end of this year will lock in a substantial market deficit through the fourth quarter, the International Energy Agency (IEA) said on Wednesday.