Oil prices continued their rally on Tuesday (September 9), driven by the latest smaller-than-anticipated increase in OPEC+ oil production, expectations that China will continue to hoard oil, and concerns over potential new sanctions against Russia.
The eight-member Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed on Sunday to increase production starting in October by 137,000 barrels per day, down from the roughly 550,000 barrels per day they made in September and August.
Brent crude rose 73 cents, or 1.1%, to $66.75 a barrel at 08:10 GMT, while U.S. West Texas Intermediate crude rose 58 cents, or 0.9%, to $62.84. "Oil prices are holding steady amid speculation that production will not rise by the amount authorized by the eight members, and furthermore, the fact that China, according to data, has already purchased around 0.5 million barrels per day for stockpiling," said Ole Hansen of Saxo Bank.
China's oil stockpiling, which has helped absorb this year's overproduction, is likely to continue at the same level into 2026, said the chief strategist at commodity trading firm Gunvor on Monday. Speculation about further sanctions against Russia after the country's largest airstrike in Ukraine set fire to a government building in Kyiv also supported prices. US President Donald Trump said he was ready to move to a second phase of restrictions.
The European Union's top sanctions official is in Washington with a team of experts to discuss what would be the first coordinated transatlantic action against Russia since Trump returned to office. Further sanctions against Russia would reduce its oil supply to global markets, which could push oil prices higher.
The US Federal Reserve's Federal Open Market Committee (FOMC) meets next week, and traders are pricing in an 89.4% chance of a quarter-point interest rate cut. Lower interest rates reduce consumer borrowing costs and can boost economic growth and oil demand. (alg)
Source: Reuters
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one ...
Oil prices rose on Wednesday (February 11th), supported by a combination of geopolitical risk premiums from US-Iran tensions and more solid Asian demand signals particularly from India which helped ea...
Oil remained in the green zone on Tuesday (February 10th), as the market refused to abandon the Middle East risk premium. As of 13:07 GMT (20:07 WIB), Brent rose +0.4% to $69.32/barrel, while WTI rose...
Oil prices fell about 1% on Monday as concerns about conflict in the Middle East eased slightly. The market calmed after the US and Iran agreed to resume talks on Tehran's nuclear program, reducing fe...
Oil prices moved slightly higher in a volatile session on Friday, as investors assessed the direction of nuclear negotiations between the United States and Iran. Price movements appeared sensitive to ...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...