Oil prices rise on supply concerns

MOSCOW, 6 Oct — PRIME. World oil prices on Thursday evening are growing, according to trading data. Markets are reacting to the decision of the OPEC + alliance to cut production by 2 million barrels per day since November.

As of 19.31 Moscow time, the price of December futures for Brent crude oil is growing by 0.54%, to $93.87 per barrel, November futures for WTI are rising in price by 0.36%, to $88.08.

On Wednesday, the alliance of oil exporting states OPEC + agreed to reduce the production of “black gold” by 2 million barrels per day from November, taking the levels agreed for August as a reference point. The alliance’s decision fuels investors’ fears about the lack of oil on the market.

In addition, on Thursday, the EU banned the transportation of oil from the Russian Federation at a price above the established ceiling by sea from December, oil products – from February. This decision also supports the growth of quotations, as it negatively affects the supply.

After the OPEC+ meeting on Wednesday, Deputy Prime Minister of the Russian Federation Alexander Novak said that the introduction of a price ceiling for Russian oil violates all market mechanisms, and can also create a shortage in the world market and, as a result, cause prices to rise.