Oil prices rose in early trading on Thursday, October 5, recovering part of the large losses incurred in the previous session after the OPEC+ Joint Ministerial Monitoring Committee maintained oil production cuts, meaning a continued shortage of supplies amid fears of an imminent decline in global economic growth.
Brent crude futures rose 11 cents to $85.92, while US West Texas Intermediate crude rose seven cents to $84.29 by 00:40 GMT.
Oil prices fell by more than five dollars at settlement yesterday, Wednesday, amid focus on a gloomier macroeconomic outlook and declining demand for fuel, following the meeting of the OPEC+ alliance committee, which includes the Organization of the Petroleum Exporting Countries (OPEC) and other allies led by Russia.
The committee did not approve any changes to the coalition’s oil production policy, and Saudi Arabia said it would continue a voluntary reduction of one million barrels per day until the end of 2023, while Russia would maintain a voluntary reduction in exports of 300,000 barrels per day until the end of December.
We still expect the market to see shortages in the fourth quarter, and lower prices reduce the likelihood of OPEC easing supply restrictions, National Australia Bank analysts said in a note.
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