Oil rises 30% in 3 months on Saudi, Russia output cuts; Brent stares at $100

With oil futures inching closer to $100 a barrel, many investors took profits on the rally given ongoing macroeconomic concerns. Crude prices going above $100 per barrel mark brings inflationary pressures on global economy and will compel central banks to raise interest rates all over again.

Front-month Brent November futures settled down 7 cents to $95.31 per barrel at the contract’s expiry, up about 2.2 per cent in the week and 27 per cent between July-September. The more liquid Brent December contract was settled down 90 cents to $92.20 per barrel. US West Texas Intermediate crude (WTI) settled down 92 cents to $90.97, up 1 per cent in the week and 29 per cent in the quarter, according to news agency Reuters.

Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a October 19 expiry, settled 1.05 per cent lower at ₹7,543 per bbl, having swung between ₹7,523 and ₹7,736 per bbl during the session so far, against a previous close of ₹7,623 per barrel.

Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!

What’s fueling the rally in crude prices?

-Earlier this month, oil producers Saudi Arabia and Russia extended their voluntary oil output cuts of a combined 1.3 million barrels per day (bpd) to the end of the year which resulted in a sharp surge in international crude prices – reaching a 10-month high peak.

-These are on top of the April cuts agreed by the Organisation of Petroleum Exporting Countries and its allies (OPEC+) running to the end of 2024. Ending the week, oil gained almost 1 per cent to a nine-month high on Friday on rising US diesel futures and worries about tighter supplies.

THIS COPY IS BEING UPDATED

“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!

Updated: 30 Sep 2023, 06:42 PM IST