On Monday, the price of crude oil rose to a barrel costing $95 and beyond. Brent crude increased by 0.38% to settle at $94.30 a barrel as of 11.14 WAT, while US West Texas Intermediate crude increased by 0.29% to settle at $90.28 a barrel.
The increase seen in oil prices on Monday was said to have been driven by predictions of a widening supply in Q4 following the extended cuts of oil from Russia and Saudi Arabia until the end of the year.
On September 5, Russia and Saudi Arabia announced that they would be extending voluntary oil cuts to the end of this year. These two countries are known to be among the biggest oil-producing nations in the world. However, the oil cuts between these countries vary.
Saudi Arabia said it will extend its voluntary oil output cut of 1 million barrels per day (bpd) for another three months until the end of December 2023, while Russia extended its voluntary decision to reduce its oil output cut by 300,000 barrels per day (bpd) to the end of this year.
It started in April when Saudi Arabia and some members of OPEC and its allies, called OPEC+, announced voluntary cuts of 1.66 million bpd. In June of the same year, at the OPEC meeting, Saudi Arabia announced another voluntary cut of 1 million bpd starting in July 2023.
That did not stop, as Saudi Arabia in July made another voluntary cut of one million bpd until August.
Read more: https://www.investingport.com/crude...yond-impact-on-markets-and-consumers-in-2023/