Oil price rises on expectation of production cuts in OPEC+

The oil prices they went up on monday Given the expectations that the OPEC+ would keep supplies tight and speculation that the US Federal Reserve will end its aggressive interest rate hike campaign.

crude oil futures Brent for November they rose 33 cents to US$88.88 a barrel at 11:33 am (15:33 GMT). While US West Texas Intermediate crude futures (WTI) for October rose 37 cents to $85.92, according to Reuters.

Reduction in Saudi Arabia

Saudi Arabia has spearheaded efforts to prop up prices, making large voluntary production cuts as part of a production deal agreed to by the producer group OPEC+ comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia.

It is widely expected that the kingdom will extend its voluntary cut of 1 million barrels per day (bpd) for the fourth consecutive monthyou. The previous announcements from Saudi Arabia came ahead of its official sale prices, which normally appear in the first week of the month.

Meanwhile, Russian Deputy Prime Minister Alexander Novak has said that Moscow had agreed with OPEC+ partners on parameters for continuing export cuts in October.

Expectations due to higher Chinese imports

The oil market is vulnerable to price increases due to low inventories and insufficient investment in new oil fields, a senior official at global commodities trading firm Trafigura (TRAFGF.UL) told Reuters on Monday.

Meanwhile, US jobs data for August have strengthened expectations that the Federal Reserve will halt its interest rate hikes this month.

In China, manufacturing activity expanded unexpectedly in August and a series of economic measures to support the country’s post-pandemic recovery have fueled optimism that demand will pick up in the world’s biggest oil importer.

With information from Reuters.