Oil costs rise due to supply-side concerns| MENAFN.COM

Wednesday, 07 December 2022 04:19 GMT

Oil costs rise due to supply-side concerns


(MENAFN) Due to supply worries in the market before the OPEC+ meeting on October 5, oil costs marginally increased in early trade on Monday.

At 09:33 regional time (06:33 GMT), the price of international benchmark Brent crude was USD87.27 per barrel, up 2.50 percent from the previous trading session's closing price of USD85.14 per barrel.

American benchmark West Texas Intermediate (WTI), which was now trading at USD81.59 a barrel, up 2.64 percent from the previous session's closing price of USD79.49.

The conclusion of the OPEC+ meeting on October 5 is anticipated by investors, since the group is anticipated to reduce output in November.

Commodity Strategist Daniel Hynes of the Australia and New Zealand Banking Group (ANZ) claimed in an email that "Brent crude has fallen over 22 percent in Q3, raising concerns among the OPEC+ alliance."

Hynes also mentioned that “the group has already signaled that it is willing to intervene to support prices. We suspect it will be moved to counteract the excessive bearishness in the market by announcing a cut to production.”

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