Oil prices witnessed a significant rebound, reaching their highest levels in over half a year, bringing an end to a two-week streak of losses. This surge in prices was primarily driven by mounting expectations of a supply squeeze in the global oil market.
Saudi Arabia, a leading member of the Organization of the Petroleum Exporting Countries (OPEC), is widely anticipated to extend its voluntary 1 million barrel per day oil production cut into October. This move signals the continuation of supply restrictions crafted by OPEC and its allies, collectively known as OPEC+, aimed at bolstering oil prices.
Furthermore, Russia, the world’s second-largest oil exporter, has already committed to reducing oil exports next month, as confirmed by Deputy Prime Minister Alexander Novak. These combined efforts by major oil-producing nations have sparked optimism among traders and investors.
Brent crude, the international benchmark, surged by $1.66, or 1.9%, to close at $88.49 per barrel. Earlier in the session, it reached a peak of $88.75 per barrel, a level not seen since January 27.
