Oil prices rise above $80 p/b in int’l market

The international benchmark for oil prices, Brent crude traded at $85.45 per barrel on Monday translating  to a 0.77% increase from the closing price on Friday of $84.80 per barrel.

Also, the American benchmark West Texas Intermediate (WTI) traded at $81.31 per barrel, up 0.81% from the session close of $80.66 per barrel.

Data from the global oil market showed that both crude oil benchmarks posted significant losses last week over fears of a slowdown in economic growth in China and the expectation of further interest rate hikes in the United States.

According to market reports, global crude oil prices were up as tight supply expectations offset weak demand forecasts.

The global supply concerns on account of lower output from members of the Organisation of Petroleum Exporting Countries and allies (OPEC+), Saudi Arabia and Russia.

However, tight global supply concerns again underpinned price increases on Monday. OPEC+ crude exports are expected to fall for a second month in August after production cuts from Russia and Saudi Arabia.

Earlier this month, Saudi Arabia said it would extend its output cutbacks of 1 million barrels per day (bpd) through September. The country originally reduced output in July and extended it through August.

Likewise, Russia announced it would continue to voluntarily reduce oil exports. It said it would reduce exports by 500,000 bpd in August and cut 300,000 bpd in September.

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