Oil rises slightly on supply concerns

MOSCOW, 29 Sep — PRIME. World oil prices on Thursday evening are growing slightly in anticipation of a possible reduction in the production of this raw material by OPEC +, but growth is constrained by macroeconomic indicators, follows from the trading data and expert comments.

As of 20.28 Moscow time, the price of December futures for Brent crude oil is growing by a symbolic 0.01%, to $88.06 per barrel, November futures for WTI – by 0.19%, to $82.31.

Earlier media reported that OPEC+ members have begun discussing additional oil production cuts for November, which could be announced on October 5, and Russia may propose to the alliance to cut oil production by about a million barrels per day. Concerns about supply are helping prices for “black gold” rise.

However, price growth is constrained by macroeconomic indicators. Thus, inflation in Germany, according to preliminary estimates, accelerated in September to 10% in annual terms from 7.9% a month earlier, updating the historical maximum. In addition, on Thursday, the US Department of Commerce released final statistics on GDP in the second quarter – the figure fell by 0.6% on an annualized basis.

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Negative macroeconomic statistics make investors fear that the global economy is entering a recession. In such conditions, the demand for oil tends to decrease.

“Fundamentals remain tight, but right now everyone is focused on the macro,” Matt Parry, head of long-term research at Energy Aspects, told MarketWatch.