On Monday the oil prices rose by one percent with the expectations that top exporter country, Saudi Arabia will push the producer club OPEC as well as perhaps push Russia to cut supply toward the end of the year 2018.
The front-month Brent crude oil features were at $67.41 per barrel which had gone up by 65 cents or one percent, from their last sale. Meanwhile, the united states crude function had gone up by 76 cents or by 11.4 percent at $57.22 per barrel.
According to Sukrit, the director of Indian energy consultancy, the oil prices continued to recover while the market will be inspecting closely for the possible impact of a supply cut. Led by Saudi Arabia, the organization of the petroleum de facto is pushing for the producer group and allies to cut from 1 million to 1.4 million barrels per day of supply to adjust for a slowdown in demand growth and also prevent oversupply.
Also on Monday, the Russian energy minister by the name of Alexander Novak said that Russia intended to sign a partnership agreement with the group and that the details would be discussed at OPECS next meeting which would be on December this coming month.
Despite the Monday gains, the crude prices, however, remain almost a quarter below their recent peaks in early October, which was weighed down by a surging slowdown in demand growth which comes after Washington dc granted Iran’s major oil customers broad exemptions to sanctions it re-imposed on Tehran in November.
In addition to that, the Japanese refiner is set to resume Iranian crude oil purchases. Japan had stopped all purchases of Iranian oil prior to the receiving of the waiver in early November.
Despite all that markets remained wary amid deep trade issues between the world’s two biggest countries which are the united states and China. This comes after both countries could not come up with an agreement through their rivalry at the APEC (Asia-pacific economic cooperation) meeting last weekend.