Oil prices are rising today. The world’s largest exporters, Saudi Arabia and Russia, confirmed their commitment to voluntarily reduce oil supplies by the end of this year.
Around 17:50 CET, the price of Brent North Sea crude rose by 1.4 percent to 86.04 dollars per barrel. U.S. WTI crude oil rose 1.6 percent to $81.76 a barrel at the same time.
Saudi Arabia confirmed on Sunday that it will continue with an additional voluntary output cut of one million barrels per day in December. The country’s production should thus continue to hover around nine million barrels per day, a source from the Ministry of Energy said. Russia has also announced that it will continue to voluntarily reduce exports of oil and oil products by 300,000 barrels per day until the end of December.
UBS strategist Giovanni Staunovo added that the cuts could be extended until the first quarter of 2024 due to seasonally weaker demand for oil at the start of each year, lingering concerns about the further development of economic growth and efforts by the OPEC+ producer group to promote stability and balance in the oil market .
Lower production from Chinese refineries could hold back price growth. Refinery output is falling from record levels in the third quarter due to shrinking profit margins and a lack of export quotas, according to traders and industry advisers, Reuters reported. Investors will also be watching for more economic data from China after weak data on factory activity in October.
Oil prices in dollars per barrel (about 159 liters):
|STOCK EXCHANGE||TYPE||CONTRACT||FINAL PRICE||PRELIMINARY CONCLUSION|
|London – ICE||Brent||January||86.04||84.89|
|New York – NYMEX||WTI||December||81.76||80.51|