Oil Prices Rise Amid US, Russia Tensions
(MENAFN) Oil costs advanced on Monday, even though the OPEC+ alliance decided to increase output in September.
The gains were driven by ongoing geopolitical frictions between Washington and Moscow, along with tight stockpiles, which appeared to outweigh apprehensions about higher production levels.
The global reference price, Brent crude, was changing hands at $69.48 per barrel by 10:50 a.m. local time (0750GMT), marking a 0.30% rise from the last trading session’s finish of $69.27.
The American benchmark, West Texas Intermediate (WTI) crude, saw a sharper jump of 1.86%, reaching $66.77 per barrel—up from $65.55 recorded in the preceding session.
These gains followed an announcement by eight members of the OPEC+ coalition—Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman—that they would collectively lift oil output by 547,000 barrels per day (bpd) in September compared to August, according to a statement released by OPEC on Sunday.
This adjustment is part of a gradual and adaptable easing of the 2.2 million bpd voluntary reductions that started on April 1.
The rise scheduled for September reflects the fourth step in the group's multi-stage plan.
Referring to a stable global economic forecast and robust market dynamics, highlighted by the current low levels of oil reserves, the organization stated: "The phase-out of the additional voluntary production adjustments may be paused or reversed subject to evolving market conditions."
Simultaneously, disappointing US job figures published on August 1 reinforced predictions that the Federal Reserve (Fed) might reduce interest rates in September.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
