Crude oil prices rise on tightening supply

I crude strengthened above $85 per barrel on Monday, hovering at the highest levels in over nine months, underpinned by expectations that OPEC+ leaders would extend measures to keep oil supplies tight.

Russian Deputy Prime Minister Alexander Novak said on Thursday that Russia agreed with its OPEC partners on the parameters for continued export cuts.

Saudi Arabia is also expected to extend its voluntary 1 million barrels per day output cut into October.

On the demand side, a surprise expansion in Chinese manufacturing activity as reported by a private survey raised optimism about the economic health of the world’s largest oil importer.

Signs that the US economy may be cooling also spurred bets that the Federal Reserve is done hiking rates, lifting overall market sentiment.

Trading Economics

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