After the OPEC + alliance decided to cut petroleum supplies by around two million barrels per day, the biggest reduction since 2020, oil prices stabilised at a three-week high on Thursday.
After increasing 1. 7% the previous day, Brent crude futures increased 88 cents, or 0. 9%, to $94. 25 a barrel by 1519 GMT.
US West Texas crude futures increased by 79 cents, or 0.9%, to $88.55 a barrel, following a 1.4% increase at Wednesday’s closing price.
Before the European Union bans Russian oil, the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, reached an agreement known as OPEC+. This agreement will put pressure on supplies in a market already experiencing a scarcity, which will raise inflation.
According to Saudi Arabia’s Energy Minister Abdulaziz bin Salman, the actual supply reduction will be between a million and a million and a half barrels per day.
The amount of the cut that belongs to Saudi Arabia is roughly 500,000 barrels per day.
The pact was denounced by US President Joe Biden’s administration as being “short-sighted.” According to the White House, President Joe Biden will continue to consider whether to remove further strategic oil stocks in an effort to lower costs.
Separately, Alexander Novak, the deputy prime minister of Russia, suggested on Wednesday that Russia may lower oil production in an effort to counter the effects of the West capping Russian energy prices as a result of Russia’s invasion of Ukraine.
The removal of US oil supplies last week, according to the US Energy Information Administration, helped to strengthen prices. In the week ending September 30, inventories decreased by 1. 4 million barrels to 429. 2 million barrels.
After OPEC+ agreed to reduce production, oil reached a three-week high.
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