Oil prices rose in early trading on Monday, recovering some of their losses in Friday’s session as investors focused on expectations of a lack of global supply and a last-minute agreement to avoid a US government shutdown, which restored their appetite for risk.
Price action
By 0037 GMT, Brent crude futures for December rose 18 cents, or 0.2 percent, to $92.38 a barrel, after falling 90 cents in Friday’s session. Brent crude futures for November settled down seven cents to $95.31 a barrel when the contract expired on Friday.
West Texas Intermediate crude futures rose 23 cents, or 0.3 percent, to $95.31 a barrel, after falling 92 cents on Friday.
The two crude oils rose by nearly 30 percent in the third quarter, supported by expectations of a widening oil supply deficit in the fourth quarter after Saudi Arabia and Russia extended voluntary production cuts until the end of the year.
Four sources told Reuters that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, or the group known as OPEC+, are unlikely to revise current oil production policy when the ministerial committee meets on Wednesday, given that supply cuts and increased demand are pushing oil prices higher.
A last-minute decision by Republican US House of Representatives Speaker Kevin McCarthy to enlist the help of Democrats to pass a temporary funding bill that postpones the possibility of a government shutdown until mid-November, which means that more than four million government employees can continue to receive their salaries.
2023-10-02 03:23:12
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