Brent price rises to $92.88 on supply concern
Oil prices showed marginal increases last week due to tight supply concerns driven by the OPEC+ group’s output cut decision, upcoming European Union (EU) sanctions and the decline in US crude stocks.
International benchmark Brent crude traded at $92.88 per barrel on Friday, rising by 1.3 per cent from the opening price on Monday of $91.71 a barrel.
American benchmark West Texas Intermediate (WTI), trading at $85.02 per barrel at the same time, saw a 0.5 per cent rise compared to Monday’s opening at $84.63 a barrel.
The easing of the US dollar exchange rate, making dollar-indexed crude oil more affordable for buyers, and strong demand expectations in China, driven by the country’s loose monetary policy and supportive policies toward the energy sector, helped oil prices start the week on a positive note.
The decision by the OPEC+ oil producer group to cut production by 2 million barrels per day (bpd) has heightened demand concerns in support of higher prices. READ: Brent Price Hits $96 after IEA Demand Forecast
The upcoming EU sanctions on Russian oil and gas exports, which are set to begin on Dec. 5, will add to market supply pressure.
Under the sixth set of sanctions, EU leaders decided in early July to cut Russian oil imports by 90 per cent by the end of the year. The strategy calls for phasing out Russian crude oil shipments by Dec. 5 and refined product deliveries by Feb. 5.
