Oil prices rose today, Monday, supported by expectations of a widening supply deficit in the fourth quarter of the year after OPEC+ extended production cuts, in addition to optimism about the recovery of demand in China, the largest global importer of crude.
By 00:27 GMT, Brent crude futures increased 5 cents, or 0.1%, to $93.98 per barrel. West Texas Intermediate crude futures rose 15 cents, or 0.2%, to $90.92 per barrel.
The two raw materials rose for the third week in a row, touching their highest levels since November, after Saudi Arabia and Russia extended production cuts until the end of the year within the framework of the “OPEC+” group plans, and with the increase in Chinese refinery production, supported by strong export margins.
Analysts at ANZ said in a note that the growth in global oil demand is heading towards recording 2.1 million barrels per day, which is consistent with the expectations of the International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC).
Traders are awaiting monetary policy decisions by central banks, including the Federal Reserve (the US central bank), this week regarding raising interest rates.
Stopping raising US interest rates may lead to a weakening of the dollar, making primary commodities denominated in the US currency, such as oil, less expensive for holders of other currencies.
