Oil prices rebounded from session lows to trade roughly flat at the end of a volatile day today, Monday, as markets considered Saudi Arabia’s threat that the OPEC + alliance would limit supply.
Brent oil contracts for October delivery concluded the afternoon at $96.48 a barrel, down 0. 25%, or 24 cents, after sliding as high as 4.5% during trade after three straight sessions of gains.
Furthermore, the US benchmark West Texas Intermediate oil futures for September delivery, which expire today, lost 54 cents, or 0.6%, to $90.23 per barrel. The most actively traded October delivery futures were down four cents, or 0. 03%, to $90. 41 per barrel.
OPEC +, according to Saudi Energy Minister Prince Abdulaziz bin Salman, has the commitment, flexibility, and means to deal with difficulties, including the ability to decrease output at any time and in a variety of methods.
Meanwhile, the White House announced that the presidents of the United States, the United Kingdom, France, and Germany discussed ways to resuscitate the 2015 Iran nuclear deal, which may allow Iranian oil to return to global markets.
According to the US State Department, a nuclear accord is now closer than it was two weeks ago.
Earlier in the day, oil prices plummeted on expectations that large increases in US interest rates would induce a global economic slowdown and harm gasoline consumption.
Fears over falling gasoline consumption in China, the world’s top oil importer, as a result of, among other things, an electrical crisis in the country’s southwest, have also weighed on oil prices.
The dollar index hit a five-week high on Monday, and a stronger greenback should make dollar-denominated commodities, such as oil, more expensive for buyers holding other currencies.
Increased natural gas costs, along with decreased Russian supplies, are pushing higher oil demand, according to Ole Hansen, director of commodities strategy at Saxo Bank.
According to two OPEC + sources, the group produced 2. 892 million barrels per day, below its objective levels in July, with its capacity to increase production failing due to sanctions on some of its members, such as Russia, and a fall in investment in other members.
Following the Saudi Energy Minister’s comments, oil has recovered some of its losses, with Brent trading at $ 96.48.
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