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Oil sizzles at 10-month high on Saudi, Russia output cuts, OPEC upbeat on demand; Brent over $91/bbl

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Oil prices rose about 1 per cent on Tuesday, September 12, boosted by a tighter supply outlook, after oil producers Saudi Arabia and Russia extended their voluntary oil supply cuts till the end of the year. The Organisation of Petroleum Exporting Countries (OPEC) said that major economies were faring better than expected despite the rising interest rates. 

November Brent crude futures rose 85 cents, or 0.9 per cent, to $91.49 a barrel, while US West Texas Intermediate crude futures for October firmed by $1.02, or 1.2 per cent, to $88.31, according to news agency Reuters.

Brent breached $90 a barrel last week for the first time in 10 months after the announcement of supply cuts of a combined 1.3 million barrels per day (mbpd) till the end of 2023 by Saudi and Russia. 

Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a September 19 expiry, were last trading higher by 1.73 per cent at 7,359 per bbl, having swung between 7,254 and 7,385 per bbl during the session so far, against a previous close of 7,248 per barrel.

 

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Updated: 12 Sep 2023, 07:47 PM IST


Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.