Following the reaffirmation by leading exporters Saudi Arabia and Russia of their commitment to additional voluntary oil supply cuts through the end of the year, oil prices increased on Monday.
By 11:45 GMT, Brent crude futures had increased by $1.25, or 1.47%, to $86.14 per barrel. At $81.80, U.S. West Texas Intermediate crude had increased by $1.29, or 1.6%.
Following almost 6% losses in the week leading up to November 3, oil was starting to recover.
According to a ministry of energy source, Saudi Arabia stated on Sunday that it will stick to its further voluntary cut of one million barrels per day (bpd) in December in order to maintain output at roughly nine million bpd.
Russia also announced it would continue its additional voluntary cut of 300,000 bpd from its crude oil and petroleum product exports until the end of December.
The cuts could be extended into the first quarter of 2024 because of “seasonally weaker oil demand at the start of every year, ongoing economic growth concerns and the aim of producers and OPEC+ to support the oil market’s stability and balance”, said UBS strategist Giovanni Staunovo.
nvestors will be watching for further economic data from China on Tuesday after weak October factory data last week.
Analysts expect a 3.3% year-on-year fall in exports in October, a Reuters poll showed, slowing from a 6.2% decline in September.
Monday’s oil price gains could have been capped by an easing of crude throughput at Chinese refineries.