Oil prices rise: OPEC+ decision and new sanctions risks from Russia push prices up
Kyiv • UNN
Oil prices rose after OPEC+'s decision to increase production less significantly and rumors of new sanctions against Russia. Brent and WTI rose to $66.37 and $62.58 per barrel, respectively.
Oil prices rose on September 9 after OPEC+'s decision to increase production more leniently than expected. In addition, prices are also affected by rumors of sanctions that may be imposed against Russia in the near future. This is reported by Reuters, writes UNN.
Details
By 03:35 GMT, Brent quotes rose by 0.53% to $66.37 per barrel, while American WTI added 0.51%, reaching $62.58 per barrel.
OPEC+ announced an increase in production from October by 137 thousand barrels per day. This is significantly lower than previous monthly increases (555 thousand in September and August, 411 thousand in July and June) and less than market experts predicted. As ANZ analyst Daniel Hynes notes, this step indicates a revision of previous reduction plans that were supposed to be in effect until 2026.
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Haitong Securities experts add that despite slower production growth, the key factor this year remains an oversupply in the market, as demand turned out to be lower than expected.
The geopolitical market also plays a significant role in this issue. After Russia's massive air strike on Kyiv, which caused a fire in a government building, Washington and Brussels are discussing new coordinated sanctions. US President Donald Trump confirmed his readiness for a "second phase" of restrictions, which could further reduce Russian oil exports and support prices.
Meanwhile, investors are closely watching the US Federal Reserve meeting next week. The market estimates the probability of a quarter-point rate cut at almost 90%. Loosening monetary policy can stimulate economic activity and increase demand for oil.
Recall
The day before, oil prices rose by more than 1% due to the threat of new sanctions against Russian exports. OPEC+ is increasing production slower than expected, supporting price growth.
However, 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.