Oil prices rise as Saudi Arabia and Russia stick to supply cuts
Oil prices today are rising. The world's biggest exporters, Saudi Arabia and Russia, have reaffirmed their commitment to voluntary oil supply cuts through the end of this year.
At around 17:50 CET, the price of North Sea Brent crude was up 1.4 percent at 86,04 dollars per barrel. US light crude WTI was up 1.6 percent at 81,76 dollars per barrel at the same time.
Saudi Arabia confirmed on Sunday that it would continue its additional voluntary production cut of one million barrels per day in December. The country's output is therefore expected to remain around nine million barrels per day, a source at the energy ministry said. Russia also announced that it would continue its voluntary cut in exports of oil and petroleum products by 300.000 barrels per day through the end of December.
UBS strategist Giovanni Staunovo added that the cuts could be extended through the first quarter of 2024. Reasons include seasonally weaker oil demand at the beginning of each year, ongoing concerns about the outlook for economic growth, and efforts by the OPEC+ group of oil producers to support stability and balance in the oil market.
Lower output from Chinese refineries could slow the price rise. Refinery output is falling from record levels in the third quarter because of declining profit margins and a shortage of export quotas, traders and industry consultants said, according to Reuters. After weak data on factory activity in October, investors will also be watching further economic data from China.
Oil prices in dollars per barrel (about 159 litres):
| EXCHANGE | TYPE | CONTRACT | SETTLEMENT PRICE | PREVIOUS CLOSE |
| London – ICE | Brent | January | 86,04 | 84,89 |
| New York – NYMEX | WTI | December | 81,76 | 80,51 |
Translation disclaimer
This article is a machine translation of the Czech original and has not yet been fully reviewed. In case of any doubt, please refer to the Czech version.
