NEW YORK, Oct. 7, 2022 (Xinhua) Oil prices rose on Friday for the fifth consecutive session, as market participants assessed the decision to cut production by major producers.
West Texas Intermediate crude for November delivery rose 4.19 US dollars, or 4.7 percent, to close at 92.64 dollars a barrel on the New York Mercantile Exchange. That represented the highest closing level for the US oil benchmark since August 29, according to data released by the Dow Jones Index.
Brent crude for December delivery rose 3.5 US dollars, or 3.7 percent, to close at 97.92 dollars a barrel on the London ICE Futures Exchange, the highest since August 30.
During this week, West Texas Intermediate crude witnessed a rise of 16.5 percent, while Brent crude jumped 15 percent, on the basis of contracts for the next month.
The Organization of Petroleum Exporting Countries and its allies, known as “OPEC +”, decided on Wednesday to reduce production by two million barrels per day, starting from November, in an attempt to support prices.
In this context, energy analysts at Commerzbank Research said in a note on Friday, “By officially reducing the daily production quota by two million barrels, OPEC+ is doing its best to avoid a decline in prices in the oil market.”
They added that the decision to cut will help “prevent the expected surplus during the last quarter of this year.”
Demand concerns amid rising recession risks and a sharp rise in the US dollar caused oil prices to fall by the end of September to their lowest levels since January.