Prices rose against the backdrop of Saudi Arabia’s voluntary cut in oil production for another month.
World oil prices rose to multi-month highs. This was confirmed by the trading data on Thursday, August 10.
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So, today the futures price for Brent crude oil for October delivery on the London ICE exchange rose above $88 per barrel for the first time since January 27.
According to the stock exchange, by 10:30 am Kyiv time, the price of Brent rose by 0.63% to $88.06 per barrel.
At the same time, futures for WTI crude oil for delivery in September grew by 0.52% – to $84.72 per barrel.
“Oil prices are supported by concerns over supply constraints as tensions between Russia and Ukraine in the Black Sea region could threaten Russian oil supplies, in addition to long-term production cuts of Saudi Arabia,” Reuters reported.
Saudi Arabia, the largest exporter, is known to plan to continue voluntary production cuts of 1 million barrels per day for another month, including September. Russia also said it would cut oil exports by 300,000 bpd in September.
The market is also looking forward to the July consumer price index (CPI) from the US, which will be published on Thursday and should be a benchmark for the future monetary policy of the Federal Reserve System.
Market watchers expect the US CPI to show a slight y/y acceleration, while m/m consumer prices will increase by 0.2%, in line with June’s growth rate.
“Today, oil investors will closely monitor the US inflation index, which is expected to show a slight recovery, which is likely to raise concerns about further rate hikes,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Amid rising oil prices, US crude inventories rose by 5.9 million barrels in the past week to 445.6 million barrels, while analysts had forecast an increase of just 0.6 million barrels.
Recall that the price of Russian Urals oil fell one and a half times. Russia’s budget provides for a gradual decline in Urals oil prices from $80 per barrel in 2022 to $65 per barrel in 2025. But the decline happened much faster.
Source: korrespondent
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