Oil advanced to a 10-month high as the physical market showed signs of tightness driven by supply cuts from OPEC+ leaders.

West Texas Intermediate rose above $92 a barrel after closing 0.8% higher on Monday. Premiums for physical barrels are surging as refiners struggle to make enough diesel ahead of a seasonal ramp-up in demand. The tighter market has spurred predictions from the likes of Chevron Corp. Chief Executive Officer Mike Wirth that $100 oil will return.

Crude has rallied by more than 30% since mid-June as Saudi Arabia and Russia curtailed exports into the global market in a bid to drain inventories and drive a rebound in prices. An improving outlook in the world’s two biggest economies — the US and China — has also supported oil’s advance.

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