On September 8, global energy markets saw oil prices rise by more than 1% – investors are taking into account the threat of new sanctions against Russian exports, while the increase in production by the Organization of the Petroleum Exporting Countries is slower than expected. This was reported by Reuters, writes UNN.
Details
After significant losses last week, the price of Brent crude oil futures rose by 80 cents, or 1.2%, to $66.30 per barrel, while WTI added 75 cents, reaching $62.62.
Both grades, considered benchmarks, lost more than 2% on Friday due to weak US labor market data, which fueled demand fears. As a result, last week ended with a decline of more than 3%.
The key factor in this pricing was geopolitical risks: after the night missile attack on Ukraine, a possible tightening of restrictions on Russian oil is being discussed, which could affect global supplies.
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At the same time, the OPEC+ decision to adjust production from October turned out to be moderate: eight participating countries will increase volumes by only 137 thousand barrels per day, which is significantly less than the growth rates in the summer, which amounted to more than 400-550 thousand barrels.
Analysts note that OPEC+, led by Saudi Arabia, is trying to balance between the desire to regain lost market share and the risk of oversupply in the winter months of the northern hemisphere. This strategy provides additional support for prices, as the market does not receive the expected volume of "cheap oil."
Recall
A few days ago, Brent and WTI oil futures fell amid expectations of increased OPEC+ production and rising US crude oil inventories. This led to weekly losses for the first time in three weeks.