2023-09-04 19:20:37
Global crude oil supplies are expected to improve over the coming weeks
Oil prices rose today, Monday, amid expectations that the OPEC + alliance will maintain the restrictions it imposed on supplies, in addition to growing hopes that the Federal Reserve (the US central bank) will stop the cycle of raising interest rates.
Saudi Arabia is leading efforts to support prices, and has announced large voluntary cuts in its oil production as part of an agreement with the OPEC + alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia.
Saudi Arabia is expected to extend its voluntary cut by 1 million barrels per day for the fourth month in a row in October.
Also read: “Financial Times”: Saudi Arabia seeks to boost oil prices by cutting production
Saudi Arabia’s previous decisions to reduce its production came before it announced the official selling prices, which it usually reveals in the first week of the month.
And last August, Riyadh announced the extension of the voluntary reduction in its oil production by one million barrels per day To include the current month of September, with the possibility of extending or extending and increasing this reduction.
A few days ago, Russian Deputy Prime Minister Alexander Novak said that Russia had agreed with the partners in the OPEC + alliance on criteria to continue reducing exports.
In turn, analyst at OANDA, Craig Erlam, said that Saudi Arabia and Russia might withdraw the cuts at any time, “but I do not imagine that they will be in a hurry and risk pushing prices down once more.”
Also read: “OPEC +” announces new cuts in oil production for the next year
Brent crude futures for November delivery rose 45 cents to settle at $89 a barrel, while US West Texas Intermediate crude futures for October delivery rose 40 cents to $85.95 a barrel.
Russell Hardy, CEO of Vitol, the world’s largest independent oil trading company, said global crude oil supplies are expected to improve over the next six to eight weeks due to refinery maintenance, but sour crude supplies will remain low.
In turn, a senior official in the global commodity trading company Trafigura indicated today, Monday, that the oil market is vulnerable to higher prices due to low stocks and lack of investment in new oil fields.
US jobs data in August reinforced expectations that the Fed will not raise rates this month.
China’s manufacturing sector activity rose unexpectedly in August, and optimism regarding a recovery in demand in the world’s largest oil importer increased due to the measures taken by the country to support the economy’s post-pandemic recovery.
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