Oil prices rose slightly today as market participants anticipated further supply cuts from the OPEC+ alliance. Saudi Arabia is reportedly planning to extend its voluntary production cut of 1 million barrels per day (bpd) into October. Additionally, Russia has promised to unveil a new supply cut deal next week, further fueling expectations of reduced output.
The global crude market is expected to ease in the upcoming weeks, according to a Vitol executive. The executive cited refinery maintenance as a key factor in the market’s anticipated stabilization. The prediction comes at a crucial time as the oil market remains vulnerable to price spikes due to low inventories and underinvestment in new oilfields.
In economic news, the latest U.S. jobs data for August has reinforced expectations that the Federal Reserve will halt interest rate hikes. The positive jobs report has added to the growing sentiment that the central bank will take a more cautious approach, providing some relief for oil markets.
Meanwhile, manufacturing activity in China unexpectedly expanded, sparking optimism for increased oil demand. The surprise expansion indicates a potential recovery in the Chinese economy, a major consumer of oil. The market has responded positively to Chinese President Xi’s recent pledges of support for the services sector and relaxed cross-border trade restrictions.
This news comes from various international sources, including Stephanie Kelly in New York, Paul Carsten and Natalie Grover in London, Mohi Narayan in New Delhi, Yousef Saba in Dubai, and Andrew Hayley in Beijing. The updates highlight the global nature of the oil market and the interconnectedness of market forces. Stay tuned for further developments as the oil industry continues to navigate geopolitical and economic challenges.
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