Oil prices rose after falling sharply to multi-month lows. This was due to the possibility that major producers will postpone the planned increase in production for next month, as well as a decline in US stocks. However, price growth is limited due to ongoing concerns about demand, reports Komersant ukrainskyi
reports with reference to Reuters.
Futures for Brent crude for November delivery rose by 15 cents (0.1%) to $72.85 per barrel. This comes after prices fell by 1.4% on the previous day to their lowest close since 27 June 2023. US West Texas Intermediate crude for October futures rose 15 cents (0.22%) to $69.35 per barrel, after falling 1.6% on Wednesday to its lowest level since December 11.
OPEC (the Organisation of the Petroleum Exporting Countries and its allies led by Russia) is discussing the possibility of postponing the planned increase in oil production in October due to the sharp drop in prices. Last week, OPEC planned to increase production by 180,000 barrels per day in October, part of a plan to gradually reverse the latest 2.2 million barrels per day cuts.
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Prices were also supported by data from the American Petroleum Institute (API), which showed a decline in US oil and fuel stocks last week. Crude oil stocks fell by 7.431 million barrels, which was significantly higher than analysts’ expectations.
However, price growth is limited due to ongoing concerns about demand. Data released by the Chinese government showed that manufacturing activity in the world’s largest oil consumer fell to a six-month low last month.
Analysts note that the slowdown in the Chinese economy and weak demand for oil in this country have undermined market confidence.