(LONDON) Crude prices wavered between up and down on Monday as the market watched for potential announcements from Saudi Arabia and Russia on extensions to their oil production and export cuts.
Around 6:45 a.m. (Eastern time), a barrel of Brent North Sea, for delivery in November, took 0.19% to 88.72 dollars.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in October, gained 0.16% to 85.69 dollars.
The market is waiting for “Saudi Arabia to announce the extension to October of its voluntary production cut of one million barrels per day and for Russia to jointly announce the continuation of restrictions on its oil exports”, comment DNB analysts .
The de facto leader of the Organization of the Petroleum Exporting Countries and their allies (OPEC), Saudi Arabia, had begun this voluntary reduction in production in July, extended for the moment until September. Russia had joined the movement, also reducing its export volumes until September.
Last week, Russian Deputy Prime Minister Alexander Novak assured that the alliance members and Russia had agreed on further production cuts, saying the “main parameters” would be announced within the week.
“OPEC cuts, lower oil exports, sustained growth in oil demand amid economic concerns and falling inventories have pushed oil prices higher” in recent days, explain DNB analysts.
Brent touched its highest price since January on Friday, and WTI peaked on Monday at its highest price since November.
OPEC countries’ production and export levels are all the more important to prices as U.S. shale oil production slows, SEB analysts note, leaving them with more market share despite current discounts.
