Oil up over tight global supply concerns

ANKARA

Oil prices increased on Friday over expectations that the OPEC+ producers would extend output cuts until the end of the year.

The international benchmark Brent crude traded at $87.11 per barrel at 0820GMT, a 0.32% rise from the closing price on Thursday of $86.83 per barrel.

The American benchmark West Texas Intermediate (WTI) traded at the same time at $83.93 per barrel, up 0.36% from the session close of $83.63 per barrel.

Tight global supply concerns following the news that Russia agreed on further OPEC+ cuts underpinned price increases.

Russia agreed on further curbs on its oil exports with OPEC+ partners, Deputy Prime Minister Alexander Novak said, according to Russian media.

The detail of the plan is expected to be announced next week.

Russia’s statement comes amid market expectations for Saudi Arabia to extend its 1 million barrel per day (bpd) oil supply cut by one month into October.

Earlier this month, Saudi Arabia said it would extend its existing output cutbacks of 1 bpd through September. The country originally reduced output in July and extended it through August.

Likewise, Russia announced it would continue to voluntarily reduce oil exports. It said it would reduce exports by 500,000 bpd in August and cut 300,000 bpd in September.

Oil markets are also focused on clues about the world’s largest oil consumer, the US’ interest rate policy for the remainder of the year, and signals of economic activity from China, the world’s largest crude oil importer.