Oil prices have stabilized near their highest levels since last November, after the decision of the Kingdom of Saudi Arabia and Russia (the leaders of the OPEC + coalition) to extend the restrictions imposed on supplies until the end of this year, which in turn reduces the volume of supply in the global market.
The price of West Texas Intermediate crude approached $87 a barrel after the two countries’ announcements on Tuesday, rising by 1.3%. Although the dealers were expecting the size of the discounts, their validity period was unexpected.
The strategy of Riyadh and Moscow will contribute to a further depletion of inventories, with price differences related to the terms of the basic contracts increasing more when delivery is delayed, which forms an upward pricing curve. The price differential between the two nearest contracts for West Texas Intermediate crude for December delivery increased by the most since mid-2022.
2023-09-06 04:36:53
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