Oil prices continue to rise on Monday after a steady rise last week.
Traders’ attention is focused on the World Petroleum Congress in Calgary (Canada), where Saudi Energy Minister Prince Abdulaziz bin Salman will be one of the key speakers.
The cost of November futures for Brent on the London ICE Futures exchange by 8:10 a.m. is $94.47 per barrel, which is $0.54 (0.57%) higher than at the close of the previous session. On Friday, the price of these contracts increased by $0.23 (0.3%) to $93.93 per barrel.
October futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) rose by $0.54 (0.57%) to $94.47 per barrel by this time. As a result of the previous trading, the price of these contracts rose by $0.61 (0.7%) to $90.77 per barrel, the highest since November 7.
Last week, the price of Brent increased by 3.6%, and WTI by 3.7%.
Since the beginning of this year, Brent has risen by 10%. Saudi Arabia’s decision to extend its voluntary 1 million bpd oil production cut by the end of 2023 has raised concerns about a supply shortage in the market, while demand prospects appear increasingly favorable as the likelihood of a US recession diminishes.
“Traders’ focus will shift to the Federal Reserve meeting this week, but the problem of oil supply shortages and the growing inventory drawdown is supporting bullish sentiment in the market,” said Vanda Insights founder Vandana Hari.
