Oil prices rise on expectations of supply cuts

MOSCOW, 9 Sep — PRIME. World oil prices are growing moderately on Friday morning, while investors are evaluating the prospects for reducing supply for this type of raw material, follows from trading data and expert comments.

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1 The US hopes that China will support the introduction of the “price ceiling” of Russian oil

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The US hopes that China will support the introduction of the “price ceiling” of Russian oil

As of 8:22 Moscow time, the price of November futures for Brent crude oil is growing by 0.72%, to $89.79 per barrel, October futures for WTI – by 0.48%, to $83.94.

The results of the OPEC+ meeting had a positive effect on oil quotes. The alliance decided to return to the August terms of the agreement and reduce the production of “black gold” in October by 100,000 barrels per day. The decision was made to support oil prices.

“While oil markets face negative sentiment in the short term, OPEC+ production cut expectations could support prices,” said Saxo Markets Singapore Pte market strategist Charu Chanana, quoted by Bloomberg. “A group of producers hinted earlier this week that they intend to keep crude oil prices near the $100 mark,” the expert added.

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In addition, the growth in the cost of “black gold” is facilitated by the statement of Russian President Vladimir Putin that Russia will stop supplying oil to those countries that impose price restrictions on it. This, in turn, also caused expectations of a reduction in oil supply in the market.