The price of New York oil broke above $90 a barrel due to concerns about supply cuts due to large-scale production cuts by oil-producing countries.
On the 7th (local time) on the New York Mercantile Exchange, the West Texas Intermediate (WTI) contract price for the November contract finished trading at $92.64 per barrel, up $4.19 (4.74%) from the previous day.
The closing price for the day is the highest level since August 29, and based on the closing price, the price of WTI futures exceeded $90 per barrel for the first time since August 30.
The price of WTI rose as the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC Plus (+) oil producing countries, an advisory body of non-OPEC oil producing countries, cut production on a large scale.
During the five trading days, oil prices rose $13.15 (16.54%).
OPEC+ oil producers agreed to cut production by 2 million barrels per day at a recent regular meeting.
“Oil prices have been under downward pressure on concerns about a weak global economy for weeks,” Colin Sijinsky, chief market strategist at SIA Wealth Management, told MarketWatch. “The feeling has changed when it shows that they are ready to cut supply to do it. so.”
Analysts at Commerzbank said in the report that “OPEC+ oil producers have officially agreed to cut production by 2 million barrels per day, showing that they are doing their best to avoid a collapse in oil prices.”
“Many member countries are already producing less than their quota, so actual production will only drop by 1 million barrels per day,” he said.
Brent futures rose to $98 a barrel on the same day.
This is the highest level since the end of August.
UBS Global Wealth Management expects the price of Brent to hover above $100 a barrel for several quarters.