{"id":7960,"date":"2023-10-02T12:51:48","date_gmt":"2023-10-02T12:51:48","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=7960"},"modified":"2023-10-02T12:51:48","modified_gmt":"2023-10-02T12:51:48","slug":"oil-climbs-as-risk-appetite-grows-focus-returns-to-supply-outlook","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/7960\/","title":{"rendered":"Oil climbs as risk appetite grows, focus returns to supply outlook"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Oil prices climbed $1 on Monday after suffering losses at the end of last week, as investors’ focus returned to a tight global supply outlook while a last-minute deal that avoided a U.S. government shutdown restored some risk appetite.<\/p>\n

Brent December crude futures rose $1.04 to $93.24 a barrel by 1124 GMT after falling 90 cents on Friday. Brent November futures had settled 7 cents lower at $95.31 a barrel at the contract’s expiry on Friday.<\/p>\n

U.S. West Texas Intermediate crude futures pared gains that had lifted the contract by more than $1 and were last 96 cents higher at $91.75 a barrel after losing 92 cents on Friday.<\/p>\n

Both benchmarks rallied nearly 30% in the third quarter on forecasts of a wide crude supply deficit in the fourth quarter after Saudi Arabia and Russia extended additional supply cuts to the end of the year.<\/p>\n

The Organization of the Petroleum Exporting Countries with Russia and other allies, or OPEC+, is unlikely to tweak its current oil output policy at a key meeting on Wednesday, four OPEC+ sources told Reuters.<\/p>\n

“Oil prices started the week on a strong note amid supply concerns with no policy change by OPEC+ expected, while the avoidance of a U.S. government shutdown over the weekend gave some relief,” said Hiroyuki Kikukawa, president of NS Trading.<\/p>\n

Speaking at an event on Monday, OPEC Secretary General Haitham Al Ghais said<\/a> the group still sees “oil demand as quite resilient this year, as it was last year.”<\/p>\n

A Reuters survey on Monday showed<\/a> OPEC oil output rose for a second straight month in September, led by increases in Nigeria and Iran despite cuts by Saudi Arabia.<\/p>\n

Pumping more crude supply into the system, Turkey will restart operations this week on a pipeline from Iraq that has been suspended for about six months, Turkey’s energy minister said<\/a> on Monday<\/p>\n

Additionally, Saudi Arabia could start to ease its additional voluntary supply cut of 1 million barrels per day (bpd), said ING analysts in a note on Monday.<\/p>\n

“The Saudis have said that there is still concern over Chinese demand. However, PMI data out over the weekend will provide some confidence.”<\/p>\n

Official data on Saturday showed that China’s factory activity expanded for the first time in six months in September, adding to a run of indicators suggesting the world’s second-largest economy has begun to stabilise.<\/p>\n

Despite the brighter China news, European manufacturing data showed the euro zone, Germany and Britain all remained mired in a downturn in September – bad news for oil demand.<\/p>\n

Updated on